Why did the Bank of England hold interest rates at 3.75% for the fourth consecutive month?

The Bank of England held its base rate at 3.75% for the fourth straight month amid persistent inflationary pressures driven by rising oil prices and geopolitical conflict, particularly following the US and Israel attack on Iran in late February, which led Iran to close the Strait of Hormuz and constrict global shipping flows and raw material circulation.

How have recent geopolitical events affected UK inflation and fuel costs?

Since the US and Israel attack on Iran and Iran’s subsequent closure of the Strait of Hormuz, crude oil prices surged—Brent hit a four-year high above $120/barrel on 30 April—causing motor fuel costs to rise sharply in the UK and pushing March inflation up to 3.3% from 3% in February; this has directly reduced consumer purchasing power and dampened prospects for economic recovery.

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Bank of England Holds Rates Amid Rising Oil Prices and Geopolitical Conflict

Apr 30, 2026

The Bank of England held rates at 3.75% amid inflation driven by rising crude oil prices. Middle East conflicts constricted shipping flows, elevating energy costs and hindering economic recovery prospects.

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