{
  "id": 8021338,
  "title": "Bank of England sounds inflation alarm as it holds interest rates",
  "url": "https://urgent.news/2026/09/17/bank-of-england-sounds-inflation-alarm-as-it-holds-interest-rates",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-17T12:02:38.000Z",
  "source": {
    "name": "Business Recorder",
    "slug": "business-recorder",
    "url": "https://www.brecorder.com/news/40439972/bank-of-england-sounds-inflation-alarm-as-it-holds-interest-rates"
  },
  "original_language": "en",
  "account": "The Bank of England has warned that British inflation could surpass 4% early next year, holding interest rates steady at 3.75%, according to its Monetary Policy Committee. Governor Andrew Bailey cautioned that prolonged conflict in the Middle East could necessitate tighter monetary policy. The committee voted 6-3 to keep interest rates unchanged, with three members advocating for a rate increase to 4%. This marks a shift in tone, aligning the BoE with the European Central Bank and U.S. Federal Reserve, who are expected to raise rates soon. Bailey emphasized that prolonged energy price volatility could significantly impact inflation, potentially leading to a rate hike to meet the 2% target. The pound weakened against the dollar, and British government bond yields declined following the announcement. The BoE also paused all active sales of gilts, or government bonds, for the next six months. This decision reflects the growing inflation risks, which have shifted from a possibility to a probability due to geopolitical tensions. Economists suggest that the Bank could raise rates at its next meeting in November. The warning of potential rate hikes adds to challenges faced by Prime Minister Andy Burnham and Finance Minister John Healey as they prepare for the budget on October 28. Despite the BoE's forecast of third-quarter economic growth at 0.4%, inflation is projected to exceed 4% in early 2027. The Bank has also announced a plan to unwind its stock of British government bonds over the next decade, eventually aiming to cut holdings to zero by 2034 while retaining long-dated gilts only to support bank note issuance.",
  "summary": "LONDON: The Bank of England predicted British inflation will top 4% early next year as it held interest rates unchanged on Thursday, and Governor Andrew Bailey warned explicitly that prolonged conflict in the Middle East may require tighter policy. Alongside an unexpected decision to pause all the BoE’s active sales of gilts for the next six months, the Monetary Policy Committee again voted 6-3…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 7,
    "also_reported_by": [
      {
        "outlet": "This Is Money",
        "title": "Bank of England holds interest rates at 3.75% for sixth time in a row: What it means for your mortgage and savings",
        "url": "https://urgent.news/2026/09/17/bank-of-england-holds-interest-rates-at-3-75-for-sixth-time-in-a-row",
        "published": "2026-09-17T11:00:56.000Z"
      },
      {
        "outlet": "City AM",
        "title": "Bank of England holds interest rates and overhauls bond sale programme",
        "url": "https://urgent.news/2026/09/17/bank-of-england-holds-interest-rates-and-overhauls-bond-sale-programme",
        "published": "2026-09-17T11:09:34.000Z"
      },
      {
        "outlet": "The New York Times",
        "title": "Bank of England Holds Rates Steady but Warns of Inflation Pressures",
        "url": "https://urgent.news/2026/09/17/bank-of-england-holds-rates-steady-but-warns-of-inflation-pressures",
        "published": "2026-09-17T11:12:06.000Z"
      },
      {
        "outlet": "Euronews",
        "title": "Bank of England holds rates at 3.75% in 6-3 split vote as inflation hits five-month high",
        "url": "https://urgent.news/2026/09/17/bank-of-england-holds-rates-at-3-75-in-6-3-split-vote-as-inflation",
        "published": "2026-09-17T11:17:09.000Z"
      },
      {
        "outlet": "Bloomberg",
        "title": "Bank of England Holds Interest Rates at 3.75%",
        "url": "https://urgent.news/2026/09/17/bank-of-england-holds-interest-rates-at-3-75",
        "published": "2026-09-17T11:21:46.000Z"
      },
      {
        "outlet": "Quartz",
        "title": "Bank of England holds rates steady as inflation climbs above 3%",
        "url": "https://urgent.news/2026/09/17/bank-of-england-holds-rates-steady-as-inflation-climbs-above-3",
        "published": "2026-09-17T11:32:44.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}