Bank of England Holds Rates at 3.75 Percent as Middle East Energy Fears Ease

Governor Andrew Bailey was encouraged by falling energy prices following the U.S.–Iran agreement, though inflation remains above target.

People sit on a ledge in the spring sun outside the Bank of England in London, England on March 20, 2025. Dan Kitwood/Getty Images

The Bank of England (BoE) held interest rates at 3.75 percent on Thursday as policymakers weighed easing Middle East tensions against high inflation and uncertainty over global energy prices.

The decision came just after President Donald Trump signed a deal with Iran to end the conflict, a development which BoE Governor Andrew Bailey said he was “very encouraged” by.