{"id":773567,"date":"2026-09-17T11:48:13","date_gmt":"2026-09-17T11:48:13","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/773567\/"},"modified":"2026-09-17T11:48:13","modified_gmt":"2026-09-17T11:48:13","slug":"bank-of-england-holds-interest-rates-at-3-75-but-governor-says-high-energy-costs-may-lead-to-increase","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/773567\/","title":{"rendered":"Bank of England holds interest rates at 3.75%, but governor says high energy costs may lead to increase"},"content":{"rendered":"

Bank holds interest rates as expected, but pauses auctions of government debtpublished at 12:11 BST<\/p>\n

12:11 BST<\/p>\n

\"\"Faisal Islam
Economics editor<\/p>\n

The Bank of England has kept interest rates at 3.75% as expected with a split of 6-3 to hold.<\/p>\n

The Bank\u2019s nine-member Monetary Policy Committee, on balance, has not seen the recent rise in energy prices pass through into wider inflationary pressures.<\/p>\n

In a surprise move, the Bank of England has paused auctions of its remaining stock of \u00a3488 billion in government debt.<\/p>\n

The Bank has put in place a long term plan to wind down the stockpile, built up during the financial crisis and Covid pandemic.<\/p>\n

\"A<\/p>\n

It has announced three notable moves, which require sign off from the Chancellor John Healey. First, \u00a3222bn long term debt held by the Bank will now be kept until it expires. <\/p>\n

Second, \u00a3120bn of this will be kept permanently to back the Bank\u2019s issuance of banknotes.<\/p>\n

Lastly, the Bank will now not sell its government debt in the markets, but instead sell it effectively directly back to the government.<\/p>\n

The net effect of all of this is that for now there will not be auctions in the markets, at a time of some painful rises in effective interest rates for governments. It might also help save some money in the short term for the public finances.<\/p>\n

The Bank says the plan has been developed by it for the past year, based on winding down the emergency purchases of debt.<\/p>\n","protected":false},"excerpt":{"rendered":"Bank holds interest rates as expected, but pauses auctions of government debtpublished at 12:11 BST 12:11 BST Faisal…\n","protected":false},"author":2,"featured_media":773568,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[84,1294,56,54,55],"class_list":["post-773567","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/773567","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=773567"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/773567\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/773568"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=773567"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=773567"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=773567"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}