BOE Holds Rates Amid War-Driven Inflation Concerns

The Bank of England has decided to hold interest rates steady at 3.75% in a closely watched decision, as officials weigh the risks posed by escalating US-Iran tensions against easing domestic inflation pressures.

The Monetary Policy Committee voted six-to-three in favor of keeping rates unchanged, with Chief Economist Huw Pill and external members Megan Greene and Catherine Mann dissenting from the majority view.

Pill and Greene had previously advocated for immediate action on interest rates, but their latest vote was against a quarter-point increase. The minutes from the meeting showed that only these two members supported an immediate rate hike in June as well.