PwC UK's Chief Economist comments on April 2026 MPC meeting

Commenting on the Bank of England MPC meeting today and the vote to keep its policy rate at 3.75%, Barret Kupelian, Chief Economist at PwC, said: 

“The dissent at the Bank of England has changed direction. Six months ago, the Monetary Policy Committee (MPC) was split over how fast to cut. Today, one member voted to hike. Rates were left at 3.75%, but the real signal was the shift in mood on the Committee: this was a hold with a harder edge. 

“Energy is the reason. Prices are likely to stay elevated, whether through reduced supply, a risk premium on an unresolved conflict, or a bidding war among importers. The Bank will be watching closely for second-round effects in wages and pricing. 

“That is now the key policy question: not whether monetary policy can stop higher oil and natural gas prices, because it cannot, but whether it must lean harder against the risk that those price rises become embedded. 

“If that risk persists, this more sceptical and cautious tone is likely to spread across central banks in other net energy-importing economies. The Bank has bought itself time today, but it has also made clear that time will only be useful if inflation expectations and second-round effects remain contained.”