Bank of England keeps rates on hold at 3.75% as Iran war shakes outlook

The Bank of England voted to keep its key interest rate on hold at 3.75% on Thursday, as widely expected by economists, as the Iran war continues to pose a dilemma for policymakers.

The central bank was widely expected to stand pat on rates as it waits to see how the energy price crunch caused by the Iran war, and a concurrent reignition of inflationary pressures in the U.K., manifest themselves in the economy.

The most recent inflation data showed the consumer price index rose to 3.3% in March, up from 3% the previous month, as higher fuel prices drove the rate higher.

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