The Bank of England, the United Kingdom's Central Bank, held a Monetary Policy Committee meeting on the 18th (local time) and kept the base rate unchanged at 3.75%.
The Bank of England held a Monetary Policy Committee (MPC) meeting that day and decided via a vote to keep the base rate at 3.75%. Seven of the nine committee members supported holding rates.
The recent decline in inflation compared with expectations appears to have been a factor behind the decision to hold. According to data released the previous day by the Office for National Statistics (ONS), the consumer price index in May rose 2.8% from a year earlier. That was the same as the previous month, above the Bank of England's 2% target but below the market forecast of 3%.
An agreement on a memorandum of understanding (MOU) to end hostilities between the United States and Iran, which pushed down international oil prices, also supported the decision. However, the Bank of England said the risk of rising energy prices remains.
Andrew Bailey, governor of the Bank of England, said, "The fall in oil prices in recent days is encouraging, but they are still higher than before the war," while adding, "The situation remains unpredictable, and there is a clear risk that energy prices will stay high for a considerable period." Bailey said, "Whatever happens next, the rise in energy prices over the past four months already means there is some inflationary pressure in the pipeline."
The Bank of England last cut rates by 0.25 percentage points in December last year and has kept rates unchanged at four consecutive Monetary Policy Committee meetings this year.