Bank of England keeps key rate at 3.75% for the fifth time this year

LONDON (AP) — 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 split decision highlights growing tensions within central banks around the world about how to respond to stubbornly high inflation and concerns that the war in Iran will lead to another round of price increases. 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.

“The impact of the energy shock on the UK economy remains uncertain,” the committee said in a summary of its deliberations. The interest rate changes required to meet the inflation target “will depend on the scale and duration of the shock, and how it propagates through the economy,” it added.

But three policymakers disagreed, saying the potential inflationary effect of the recent surge in energy prices was too great to ignore, even though price spikes earlier in the war haven't yet pushed up prices and wage demands in Britain. All three voted to raise rates by a quarter point to 4%.

“I remain concerned about more insidious second-round effects driven by catch-up dynamics in wage and price setting,” committee member Huw Pill said. “While these may be slower to emerge, they could prove more lasting and create greater intrinsic inflation persistence.”

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. Higher rates make it more expensive to borrow money, tending to reduce spending and lower prices. Lower rates make it cheaper to borrow, tending to increase spending and boost prices.

Consumer price inflation in the U.K. slowed to 2.6% in the 12 months through June from 2.8% the previous month, according to the latest figures from the Office for National Statistics. While the drop was bigger than economists expected, inflation remained above the bank’s 2% target for a 21st consecutive month.

Renewed attacks by the United States and Iran in the Middle East sent oil prices soaring this month due to concerns about the continued disruption of traffic in the Strait of Hormuz, through which a fifth of all crude oil and natural gas traded once passed in peacetime

Brent crude, the benchmark for world oil prices, jumped to more than $100 a barrel on July 23 from less than $71 three weeks earlier as the ceasefire between the U.S. and Iran broke down. Brent crude traded for about $92 a barrel on Thursday.

In Britain, economists are also closely watching the tax and spending policies of new Prime Minister Andy Burnham to see if his efforts to shield consumers from rising prices and spur economic growth are likely to add to inflation.

From left: Bank of England (BoE) Deputy Governor Clare Lombardelli, BoE Governor Andrew Bailey, head of media Katie Martin and BoE Deputy Governor for Markets and Banking Dave Ramsden take part in the Monetary Policy Report press conference in London, Thursday, July 30, 2026. (Henry Nicholls/Pool Photo via AP)

Bank of England (BoE) Governor Andrew Bailey speaks during the Monetary Policy Report press conference in London, Thursday, July 30, 2026. (Henry Nicholls/Pool Photo via AP)

Bank of England (BoE) Deputy Governor Clare Lombardelli speaks during the Monetary Policy Report press conference in London, Thursday, July 30, 2026. (Henry Nicholls/Pool Photo via AP)

Bank of England (BoE) Governor Andrew Bailey, right, and BoE Deputy Governor Clare Lombardelli attend the Monetary Policy Report press conference in London, Thursday, July 30, 2026. (Henry Nicholls/Pool Photo via AP)

Bank of England (BoE) Governor Andrew Bailey speaks during the Monetary Policy Report press conference in London, Thursday July 30, 2026. (Henry Nicholls/Pool Photo via AP)

LOS ANGELES (AP) — At 60, Too $hort is helping usher hip-hop into what he calls its senior citizen era. Just don’t expect him to rap like one.

The Oakland hip-hop pioneer is still recording, touring and talking slick more than four decades after he began selling homemade tapes on the streets of the Bay Area. While the genre has long treated aging like an unwritten career-ending offense, Too $hort is breaking the rule and challenging the culture’s elder statesmen to keep going with him.

His latest proof is “Sir Too $hort Vol. 2: Drink & Smoke,” his 23rd studio album, produced entirely by longtime collaborator Lil Jon. It arrives Friday, exactly 20 years after the release of his enduring hit “Blow the Whistle.”

Too $hort, whose catalog also includes classics like “The Ghetto” and “Shake That Monkey,” says he isn’t interested in slowing down anytime soon. That was certainly evident when he and E-40 performed at the NFL Honors in February.

In an interview with The Associated Press this week, Too $hort reflected on turning 60, challenging hip-hop’s age limits, preserving the legacy of Lil Jon’s late son, DJ Young Slade, the staying power of “Blow the Whistle” and why he has no plans to stop until “the wheels fall off.”

This interview has been edited for length and clarity.

TOO $HORT: At the age of 14 or 15, my mentality was, “Let people hear this music. We’re going to rock some house parties and high school dances and sell some tapes to fans in the streets.” When I got my foot in the door, I knew this was going to be my job. It was always “till the wheels fall off.” It was never, “Let’s do this for 30 or 40 years.”

I’ve always said the day hip-hop is no longer my job is probably the day I’ll stop. But the love I have for hip-hop won’t allow me to stop recording. I’ve never taken a long break. I’ve continuously been in the studio, continuously doing shows. I just keep it going because it’s my job.

TOO $HORT: I truly love making music. It’s never felt like work. I could have stopped after “Blow the Whistle” and been like, “Story told.” But somebody’s got to go out into these uncharted waters and blaze the trail. Look at E-40,Snoop Dogg,Fat Joe and the other guys who kept going after the kids were grown and the grandkids were on the way.

Who laid the rule down that in hip-hop you gotta stop at 40? Every milestone they said was old. First it was 30, then it was 40, then it was 50. Now we got senior citizen rappers, and this ... is real. Hip-hop is entering the place where jazz, blues and R&B have older artists who are still performing and recording. We should too.

TOO $HORT: I don’t know if you could give me the ingredients and tell me how to do it again; I don’t think I could. It had to happen organically. I give Lil Jon a lot of credit because he’s made a lot of songs we’ve loved since the day they came out. We make good music together, and that’s why I’m excited for people to hear what we’re still doing 30 years after we first worked together.

TOO $HORT: His son passed away after we finished recording. We had actually done about twice as many songs as ended up on this project. I saw how it affected Jon, and I had recently lost my brother, so I knew that feeling of loss. The whole time, Slade was producing or co-producing a lot of the tracks I was working on. The first thing that came to me was that I’d be more than proud to be part of his son’s legacy and give something to the world that would help him live forever. Jon keeps saying, “Slade’s legacy,” and I’m just trying to be a part of that and show the world we lost another good, talented person.

TOO $HORT: We did one in 2020, but it wasn’t a battle. We had a good time. We did a lot of laughing, a lot of togetherness. I didn’t want to battle 40 then, and I don’t want to battle him now. That’s my best friend in hip-hop. I’d sign up for me and 40 against anybody. That’d be fun. They haven’t had two groups. … I put that out there: Who wants to battle Too $hort and E-40 in Verzuz?

Too $hort poses for a portrait on Tuesday, July 28, 2026, in Los Angeles. (AP Photo/Jae C. Hong)

Too $hort poses for a portrait on Tuesday, July 28, 2026, in Los Angeles. (AP Photo/Jae C. Hong)

Too $hort poses for a portrait on Tuesday, July 28, 2026, in Los Angeles. (AP Photo/Jae C. Hong)

Too $hort poses for a portrait on Tuesday, July 28, 2026, in Los Angeles. (AP Photo/Jae C. Hong)

Too $hort poses for a portrait on Tuesday, July 28, 2026, in Los Angeles. (AP Photo/Jae C. Hong)