Bank of England Keeps Bank Rate at 3.75% but Signals Willingness to Increase if Energy Shock Persists
The Bank of England held its key interest rate at 3.75% on Thursday while warning that higher energy prices pose an upside risk to inflation and that policy may need to tighten further to ensure inflation returns to 2%. Three members dissented, preferring a 25 basis-point rise to 4%, reflecting debate over how persistent energy costs will feed thro…