BoE Holds Rates Amid Concerns Over Inflation and Global Uncertainty

The Bank of England's Monetary Policy Committee (MPC) voted to maintain interest rates at 3.75% in a split decision, with six members voting to hold and three arguing for a hike.

Bank Governor Andrew Bailey emphasized that the decision not to raise rates was based on current economic conditions, saying 'we took a decision today to leave bank rate unchanged'.

Bailey also noted the need for inflation to return to its 2% target, stating 'it is our job to ensure that inflation gets back to the 2% target and stays there.'

He added that if the conflict in the Middle East persists and leads to emerging second-round effects, tightening policy may be necessary to counter inflationary pressures.