Bank of England keeps interest rate at 3.75 pct

LONDON -- The Bank of England (BoE) has maintained its benchmark interest rate unchanged at 3.75 percent, Britain's central bank said in a statement Thursday.

At its meeting ending on Wednesday, the BoE's Monetary Policy Committee voted by a majority of eight to one to maintain the rate. One member voted to increase the rate by 0.25 percentage points to 4 percent, according to the statement.

The bank considered multiple factors affecting the British economy. It underlined that the conflict in the Middle East has led to energy price rises, and inflation has risen to 3.3 percent and is expected to rise further in 2026.

Energy price rises will make businesses increase their own prices to cover the costs, while workers may ask for higher wages due to rise of bills, it added.