BoE Holds Key Interest Rate at 3.75% Amid Rising Energy Prices

The Bank of England has decided to keep its key interest rate at 3.75%, in line with economists' expectations.

The decision was made by a 6-3 split vote, with three committee members voting for a 25 basis point hike: Megan Greene, Huw Pill, and Catherine Mann.

The central bank's Monetary Policy Committee agreed that the risks to energy prices remain skewed to the upside, despite a recent fall in headline UK inflation to 2.6% in June, its lowest level in 15 months.

Bank of England Governor Andrew Bailey stated that he is seeing a broader slowing in domestic inflation and noted that pressures are building more slowly than expected.