Bank of England Keeps Interest Rate at 3.75%

Apr 24, 2026, 12:30
A2

Bank of England Keeps Interest Rate at 3.75%

Introduction

The Bank of England''s committee will vote on the interest rate on April 30. Many economists think the rate will stay at 3.75%. Inflation is rising because of the conflict in the Middle East.

Main Body

The committee has nine members. They will also release a report about the economy. The conflict between US-Israeli and Iranian forces started in late February. It caused higher inflation. UK inflation went up to 3.3% in March. That was a three-month high. Fuel prices increased by 8.7% in one month. That was the biggest increase since June 2022. Also, UK firms think food prices could go up by 7% next year. But the UK economy grew by 0.5% in February. That was more than expected. People bought more fuel because they were worried. Andrew Goodwin from Oxford Economics says the committee will keep the rate at 3.75%. Most members want to wait and see. A few might want to raise the rate by 0.25%. Thomas Pugh from RSM UK thinks all nine will vote to keep the rate. He says there is a lot of uncertainty about the Iran conflict. But strong data might lead to a rate increase in summer. Elliott Jordan-Doak from Pantheon Macroeconomics also thinks they will keep the rate. But if the conflict continues and oil prices stay high, they might raise the rate in June or July. He thinks one rate increase this year in June, then two cuts in 2027.

Conclusion

In short, the Bank of England will probably keep the rate at 3.75% at the next meeting. But inflation is still a problem, and the Middle East conflict is uncertain. So the rate might change later.

Vocabulary Learning

increase
to become bigger in number or amount增加；上升
Example:Fuel prices increased by 8.7% in one month.
keep
to not change something; to stay the same保持；維持不變
Example:The committee will keep the rate at 3.75%.
month
one of the twelve parts of a year月份
Example:UK inflation went up to 3.3% in March.
price
the amount of money you pay to buy something價格；價錢
Example:Food prices could go up by 7% next year.
rate
a number that shows how much something costs or is paid利率；比率
Example:The Bank of England will vote on the interest rate.

Sentence Learning

The Bank of England's committee will vote on the interest rate on April 30.
This sentence uses the simple future tense ('will vote') to talk about a planned action. The subject is 'committee'.本句使用一般將來時態（'will vote'）來表示一個計劃中的行動。主語是'委員會'。
Inflation is rising because of the conflict in the Middle East.
This sentence uses the present continuous tense ('is rising') to describe something happening now. 'Because of' shows the reason.本句使用現在進行時態（'is rising'）來描述正在發生的事情。'Because of'表示原因。
The committee has nine members.
This sentence uses the simple present tense ('has') to state a fact. The subject is 'committee'.本句使用一般現在時態（'has'）來陳述一個事實。主語是'委員會'。
Fuel prices increased by 8.7% in one month.
This sentence uses the simple past tense ('increased') to talk about a completed action in the past. 'By' shows the amount of change.本句使用一般過去時態（'increased'）來談論過去完成的動作。'By'表示變化的幅度。
The UK economy grew by 0.5% in February.
This sentence uses the simple past tense ('grew') to describe a past event. 'By' indicates the percentage of growth.本句使用一般過去時態（'grew'）來描述過去的事件。'By'表示增長的百分比。
B2

Bank of England Expected to Maintain Interest Rate at 3.75% Amid Inflationary Pressures from Middle East Conflict

Introduction

The Bank of England''s Monetary Policy Committee is scheduled to vote on the base interest rate on April 30, with economists widely anticipating a decision to hold the rate at 3.75% despite rising inflation linked to the ongoing conflict in the Middle East.

Main Body

The nine-member committee will also release its first full monetary policy report and economic forecasts since the conflict between US-Israeli and Iranian forces began in late February. Recent economic data shows that the conflict has contributed to higher inflation. The Office for National Statistics reported that UK CPI inflation rose to 3.3% in March, a three-month high. This was driven by a sharp increase in motor fuel prices, which went up 8.7% month-on-month, the largest such rise since June 2022. Furthermore, Bank of England research indicates that UK firms expect food inflation could reach 7% next year. Despite these inflationary signals, other data show the UK economy grew by 0.5% in February, exceeding forecasts of 0.1%, and retail sales volumes were stronger than expected, partly due to motorists stockpiling fuel. Economists from several institutions have offered their assessments. Andrew Goodwin of Oxford Economics stated that the MPC is likely to keep the rate unchanged at 3.75%, as most members prefer to maintain a restrictive policy while gathering more information on how the energy shock affects the economy. He noted that a minority might vote for a 25-basis-point increase as a pre-emptive measure against the risk of higher inflation. Thomas Pugh of RSM UK described the outcome as ''nailed on,'' predicting a unanimous 9-0 vote to hold. He cited significant uncertainty about the Iran conflict''s impact on energy prices and the economy. However, he cautioned that the resilience of recent data raises the possibility of a rate increase in the summer. Elliott Jordan-Doak of Pantheon Macroeconomics also forecast a unanimous hold but suggested that if May surveys repeat the current pattern and the Middle East ceasefire remains fragile with disrupted oil flows, the MPC might be forced to increase rates in June or July. He projected one rate increase this year in June, followed by two cuts in 2027, bringing the rate to 3.5%.

Conclusion

In summary, the Bank of England is expected to keep interest rates unchanged at 3.75% at the upcoming meeting. However, the persistence of inflationary pressures and uncertainty surrounding the Middle East conflict leave open the possibility of future rate adjustments.

Vocabulary Learning

hold the rate
To keep the interest rate at its current level without increasing or decreasing it.維持利率不變
Example:The Bank of England is expected to hold the rate at 3.75%.
nailed on
Certain to happen; guaranteed.確定無疑的
Example:Thomas Pugh described the outcome as 'nailed on,' predicting a unanimous 9-0 vote to hold.
pre-emptive measure
An action taken in advance to prevent a potential problem or risk.預防性措施
Example:A minority might vote for a 25-basis-point increase as a pre-emptive measure against the risk of higher inflation.
resilience
The capacity to recover quickly from difficulties or withstand adverse conditions.韌性; 復原力
Example:He cautioned that the resilience of recent data raises the possibility of a rate increase in the summer.
stockpiling
To accumulate large quantities of goods, often in anticipation of shortage or price increase.囤積
Example:Retail sales volumes were stronger than expected, partly due to motorists stockpiling fuel.

Sentence Learning

The Bank of England's Monetary Policy Committee is scheduled to vote on the base interest rate on April 30, with economists widely anticipating a decision to hold the rate at 3.75% despite rising inflation linked to the ongoing conflict in the Middle East.
This sentence uses 'despite' to contrast the expectation of holding rates with rising inflation. The passive voice 'is scheduled' focuses on the action rather than the subject. The phrase 'linked to' is a reduced relative clause (which is linked to).呢句句子用咗'despite'嚟對比預期維持利率同上升嘅通脹。被動語態'is scheduled'強調動作而唔係主體。'linked to'係一個縮減嘅關係從句（即which is linked to）。
This was driven by a sharp increase in motor fuel prices, which went up 8.7% month-on-month, the largest such rise since June 2022.
The passive voice 'was driven by' introduces the cause. The relative clause 'which went up' adds detail about motor fuel prices. The appositive phrase 'the largest such rise since June 2022' gives additional information about the rise.被動語態'was driven by'引出原因。關係從句'which went up'補充關於汽車燃油價格嘅細節。同位語短語'the largest such rise since June 2022'提供關於升幅嘅額外資訊。
Despite these inflationary signals, other data show the UK economy grew by 0.5% in February, exceeding forecasts of 0.1%, and retail sales volumes were stronger than expected, partly due to motorists stockpiling fuel.
'Despite' shows contrast between inflation signals and economic growth. The present participle phrase 'exceeding forecasts' acts as an adjective describing the growth. 'Partly due to' explains the reason for stronger retail sales.'Despite'顯示通脹信號同經濟增長之間嘅對比。現在分詞短語'exceeding forecasts'作為形容詞修飾增長。'Partly due to'解釋零售銷售強勁嘅原因。
Andrew Goodwin of Oxford Economics stated that the MPC is likely to keep the rate unchanged at 3.75%, as most members prefer to maintain a restrictive policy while gathering more information on how the energy shock affects the economy.
'As' introduces the reason for keeping rates unchanged. 'While' indicates that gathering information happens at the same time as maintaining policy. The 'how' clause explains what information they are gathering.'As'引出維持利率不變嘅原因。'While'表示收集資訊同維持政策同時進行。'how'從句解釋佢哋收集緊咩資訊。
Elliott Jordan-Doak of Pantheon Macroeconomics also forecast a unanimous hold but suggested that if May surveys repeat the current pattern and the Middle East ceasefire remains fragile with disrupted oil flows, the MPC might be forced to increase rates in June or July.
'If' introduces a conditional scenario with two conditions joined by 'and'. The passive 'might be forced to increase' suggests external pressure. 'With disrupted oil flows' is a prepositional phrase describing the state of the ceasefire.'If'引入一個有兩個條件嘅假設情景。被動語態'might be forced to increase'暗示外部壓力。'With disrupted oil flows'係介詞短語描述停火狀態。
C2

Bank of England Expected to Maintain Interest Rate at 3.75% Amid Inflationary Pressures from Middle East Conflict

Introduction

The Bank of England''s Monetary Policy Committee is scheduled to vote on the base interest rate on April 30, with economists widely anticipating a decision to hold the rate at 3.75% despite rising inflation linked to the ongoing conflict in the Middle East.

Main Body

The nine-member committee will also release its first full monetary policy report and economic forecasts since the onset of hostilities between US-Israeli and Iranian forces in late February. Recent economic data indicates that the conflict has contributed to higher inflation. The Office for National Statistics reported that UK CPI inflation rose to 3.3% in March, a three-month high, driven by a sharp increase in motor fuel prices—up 8.7% month-on-month, the largest such rise since June 2022. Additionally, Bank of England research indicates that UK firms anticipate food inflation could reach 7% next year. Despite these inflationary signals, other data show the UK economy grew by 0.5% in February, exceeding forecasts of 0.1%, and retail sales volumes were stronger than expected, partly due to motorists stockpiling fuel. Economists from several institutions have offered their assessments. Andrew Goodwin of Oxford Economics stated that the MPC is likely to keep the rate unchanged at 3.75%, as most members prefer to maintain a restrictive policy while gathering more information on the energy shock''s transmission. He noted that a minority might vote for a 25-basis-point hike as a pre-emptive measure against upside inflation risks. Thomas Pugh of RSM UK described the outcome as ''nailed on,'' predicting a unanimous 9-0 vote to hold, citing significant uncertainty about the Iran conflict''s impact on energy prices and the economy. However, he cautioned that the resilience of recent data raises the possibility of a rate increase in the summer. Elliott Jordan-Doak of Pantheon Macroeconomics also forecast a unanimous hold but suggested that if May surveys repeat the current pattern and the Middle East ceasefire remains fragile with disrupted oil flows, the MPC might be compelled to hike in June or July. He projected one rate increase this year in June, followed by two cuts in 2027, bringing the rate to 3.5%.

Conclusion

In summary, the Bank of England is expected to keep interest rates unchanged at 3.75% at the upcoming meeting, but the persistence of inflationary pressures and uncertainty surrounding the Middle East conflict leave open the possibility of future rate adjustments.

Vocabulary Learning

fragile
Easily broken, damaged, or destabilized; used to describe a ceasefire or situation that is vulnerable to disruption.脆弱的：容易破裂、受損或動盪的；用於描述易受干擾的停火或局勢。
Example:If the Middle East ceasefire remains fragile with disrupted oil flows, the MPC might be compelled to hike in June or July.
nailed on
(British informal idiom) Absolutely certain or guaranteed to happen; a sure thing.（英式口語習語）板上釘釘的：絕對確定或必然發生的事。
Example:Thomas Pugh of RSM UK described the outcome as 'nailed on,' predicting a unanimous 9-0 vote to hold.
pre-emptive
An action taken to prevent a potential future problem or risk before it occurs, especially in monetary policy.先發制人的：為防止潛在未來問題或風險而提前採取的行動，尤用於貨幣政策。
Example:A minority might vote for a 25-basis-point hike as a pre-emptive measure against upside inflation risks.
resilience
The capacity of an economy or data series to recover quickly from shocks or to remain strong despite adverse conditions.韌性：經濟體或數據序列在面對衝擊時迅速恢復或保持強勁的能力。
Example:He cautioned that the resilience of recent data raises the possibility of a rate increase in the summer.
transmission
The process by which an economic shock (e.g., energy price rise) spreads through the economy, affecting prices, wages, and output.傳導機制：經濟衝擊（如能源價格上漲）在經濟體系中擴散並影響物價、工資及產出的過程。
Example:Most members prefer to maintain a restrictive policy while gathering more information on the energy shock's transmission.

Sentence Learning

The Office for National Statistics reported that UK CPI inflation rose to 3.3% in March, a three-month high, driven by a sharp increase in motor fuel prices—up 8.7% month-on-month, the largest such rise since June 2022.
Main clause: 'The Office for National Statistics reported'. Subordinate that-clause: 'that UK CPI inflation rose to 3.3% in March'. Appositive noun phrase: 'a three-month high'. Past participle phrase: 'driven by a sharp increase in motor fuel prices'. Dash introduces an appositive phrase: 'up 8.7% month-on-month', followed by another appositive: 'the largest such rise since June 2022'. This sentence exhibits high lexical density and multiple embedded appositives and participial phrases.主句：「The Office for National Statistics reported」。從屬 that 子句：「that UK CPI inflation rose to 3.3% in March」。同位語名詞短語：「a three-month high」。過去分詞短語：「driven by a sharp increase in motor fuel prices」。破折號引入同位語短語：「up 8.7% month-on-month」，再接另一個同位語：「the largest such rise since June 2022」。此句展現高詞彙密度及多重嵌入的同位語與分詞短語。
Despite these inflationary signals, other data show the UK economy grew by 0.5% in February, exceeding forecasts of 0.1%, and retail sales volumes were stronger than expected, partly due to motorists stockpiling fuel.
Concessive prepositional phrase: 'Despite these inflationary signals'. Main clause: 'other data show' followed by a that-clause (omitted 'that') 'the UK economy grew by 0.5% in February'. Present participial phrase: 'exceeding forecasts of 0.1%'. Coordinating conjunction 'and' joins a second main clause: 'retail sales volumes were stronger than expected'. Adverbial phrase: 'partly due to motorists stockpiling fuel' (gerund phrase). The sentence uses a concessive structure, participial modification, and complex noun phrase.讓步介詞短語：「Despite these inflationary signals」。主句：「other data show」後接省略 that 的子句「the UK economy grew by 0.5% in February」。現在分詞短語：「exceeding forecasts of 0.1%」。並列連詞「and」連接第二個主句：「retail sales volumes were stronger than expected」。副詞短語：「partly due to motorists stockpiling fuel」（動名詞短語）。此句使用了讓步結構、分詞修飾及複雜名詞短語。
Andrew Goodwin of Oxford Economics stated that the MPC is likely to keep the rate unchanged at 3.75%, as most members prefer to maintain a restrictive policy while gathering more information on the energy shock's transmission.
Main clause: 'Andrew Goodwin of Oxford Economics stated'. That-clause: 'that the MPC is likely to keep the rate unchanged at 3.75%'. Adverbial clause of reason: 'as most members prefer to maintain a restrictive policy'. Within that clause, a present participial phrase: 'while gathering more information on the energy shock's transmission' (reduced adverbial clause). The sentence features a that-clause, an as-clause, and a reduced while-clause, demonstrating complex subordination.主句：「Andrew Goodwin of Oxford Economics stated」。that 子句：「that the MPC is likely to keep the rate unchanged at 3.75%」。原因狀語從句：「as most members prefer to maintain a restrictive policy」。該從句內含現在分詞短語：「while gathering more information on the energy shock's transmission」（省略的 while 狀語從句）。此句包含 that 子句、as 子句及省略的 while 子句，展現複雜從屬結構。
Thomas Pugh of RSM UK described the outcome as 'nailed on,' predicting a unanimous 9-0 vote to hold, citing significant uncertainty about the Iran conflict's impact on energy prices and the economy.
Main clause: 'Thomas Pugh of RSM UK described the outcome as 'nailed on''. Two present participial phrases in succession: 'predicting a unanimous 9-0 vote to hold' and 'citing significant uncertainty about the Iran conflict's impact on energy prices and the economy'. These phrases function as adverbial modifiers, providing additional information about the manner or reason. The sentence uses multiple non-finite clauses for concise, high-density expression.主句：「Thomas Pugh of RSM UK described the outcome as 'nailed on'」。兩個連續的現在分詞短語：「predicting a unanimous 9-0 vote to hold」及「citing significant uncertainty about the Iran conflict's impact on energy prices and the economy」。這些短語作為副詞修飾語，提供方式或原因補充。此句使用多個非限定子句以達到簡潔高密度的表達。
Elliott Jordan-Doak of Pantheon Macroeconomics also forecast a unanimous hold but suggested that if May surveys repeat the current pattern and the Middle East ceasefire remains fragile with disrupted oil flows, the MPC might be compelled to hike in June or July.
Main clause: 'Elliott Jordan-Doak of Pantheon Macroeconomics also forecast a unanimous hold'. Coordinating conjunction 'but' introduces a second main clause: 'suggested that...'. Within the that-clause, a complex conditional structure: 'if May surveys repeat the current pattern and the Middle East ceasefire remains fragile with disrupted oil flows' (two conditions joined by 'and'), followed by the result clause 'the MPC might be compelled to hike in June or July'. The sentence features a conditional with multiple conditions, using the modal 'might' to express possibility.主句：「Elliott Jordan-Doak of Pantheon Macroeconomics also forecast a unanimous hold」。並列連詞「but」引入第二個主句：「suggested that...」。在 that 子句內，有複雜條件句結構：「if May surveys repeat the current pattern and the Middle East ceasefire remains fragile with disrupted oil flows」（兩個條件由 and 連接），後接結果子句「the MPC might be compelled to hike in June or July」。此句包含多條件條件句，使用情態動詞「might」表達可能性。