Bank of England holds at 3.75% and warns inflation has further to climb
The July Monetary Policy Report shows a 6–3 vote, with the committee expecting price growth to rise later in 2026.
The Monetary Policy Committee voted six to three to keep Bank Rate at 3.75% at its July meeting, and its accompanying report projects inflation rising later in 2026 before returning to target.
A 6–3 split is not a comfortable hold. Three members were ready to move, and the majority's case rests on the expected energy-driven bump in inflation — visible a month later when July CPI printed 2.9%.
The rest of the summer's data pulled in both directions: pay growth and vacancies cooled, which favours the doves, while the PMI and consumer confidence strengthened, which does not.
The report is the fullest statement of the Bank's current thinking, with forecasts for growth, inflation and the labour market; the link below goes to the July edition.