The Bank of England kept its key interest rate on hold for the fifth time this year after a bigger-than-expected drop in the inflation rate last month gave policymakers breathing space to assess the fallout from renewed fighting in IranBank of England keeps key rate at 3.75% for the fifth time this yearLONDON -- The Bank of England kept its key interest rate on hold for the fifth time this year on Thursday after a bigger-than-expected drop in the inflation rate last month gave policymakers breathing space to assess the fallout from renewed fighting in Iran. The bank’s monetary policy committee voted 6-3 to keep the rate at 3.75%, in line with the expectations of most economists. Policymakers have kept the rate at that level since December after four rate cuts in 2025. The U.S. Federal Reserve on Wednesday kept its key rate at a range of 3.5% to 3.75%, with Chairman Kevin Warsh saying the Fed “will not hesitate to act” to keep inflation under control. Adjusting central bank interest rates, which serve as a benchmark for loans and credit cards, is the primary tool central banks use to control inflation.