Bank of England keeps rates unchanged
The Bank of England has held Bank Rate at 3.75%, in line with market expectations. Six members of the Monetary Policy Committee voted to keep rates unchanged, while three supported an increase.
Lower-than-expected inflation supported the decision. However, rising energy prices could push inflation higher again later this year, meaning further rate increases cannot be ruled out.
The Federal Reserve also holds rates
The US Federal Reserve also left interest rates unchanged. However, with policymakers offering less guidance on future decisions, there is growing uncertainty over when rates may move again.
Some economists believe an increase may be needed sooner, while financial markets currently expect any change to come later in the year.
What this means
For now, unchanged rates provide some stability for borrowers, savers and businesses. However, continued pressure from oil and energy prices could keep inflation elevated and influence future central-bank decisions.
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