Bank of England Keeps Borrowing Costs Steady Amid Inflation Fears

The Bank of England has left borrowing costs unchanged at 3.75%, citing concerns that inflation may stay above target longer than expected.

Policymakers are divided over the next move, with some arguing for higher interest rates to combat inflation and others advocating for a rate cut to boost economic growth.

The Bank's latest outlook suggests inflation may peak at close to 3% before easing back, which is a sharper near-term picture than previously expected.

Chief Economist Huw Pill has argued that underlying inflation is still running at around 2.5%, reinforcing the view that rate cuts would be premature.