Bank of England holds interest rates: comment

Today’s decision does little to shield households from rising mortgage costs with lenders already pricing in surges in global oil and gas prices that will drive up inflation and likely mean the Bank hikes rates later in the year. With petrol prices up, energy bills set to rise and food prices likely to follow suit, it’s another reminder that the British bill payers are still susceptible to oil and gas price shocks.

“Since the Russian invasion of Ukraine caused the last gas crisis, more renewables taking the place of gas power stations mean UK energy bill payers will be better insulated and even if electricity prices rise, there are now almost 1.9 [2] million EVs on the roads whose drivers will be much better off than if they’d stuck with a petrol car.

“What we pay for our mortgages is being dictated by oil and gas markets which are in turn being driven by the decisions of Trump, but through the transition to net zero emissions, the UK’s dependence on oil and gas will fall making the country more energy secure.”

Notes to editors:

1. Bank of England: https://www.bankofengland.co.uk/monetary-policy-summary-and-minutes/2026/march-2026

2. zapmap: https://www.zapmap.com/ev-stats/ev-market 

For more information or for interview requests:

George Smeeton, Head of Communications, ECIU, t: 020 8156 5305, m: 07894 571 153, email: george.smeeton@eciu.net