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Wed, 17 Jun 2026

Wed, 17 Jun 2026 Interest rates expected to be held by Bank of England

The Bank last cut interest rates in December but upheaval in the Middle East has stalled any further reductions.
The Bank of England (BoE) is expected to keep interest rates steady at 3.75% on Thursday, as policymakers closely monitor the situation in the Middle East. Despite concerns over inflation, which remains above target at 2.8%, recent data suggests that prices are rising at a slower pace than feared. Food price increases have slowed to a 17-month low, while transport costs continue to rise. The promise of a US-Iran peace deal has eased some fears of further interest rate hikes. However, analysts warn that inflation is likely to accelerate in the UK over the summer due to higher wholesale energy prices and an upcoming increase in Ofgem's price cap. As a result, millions of households face rising energy bills from July, which could lead to increased mortgage rates and savings costs.