Bank of England holds rates at 3.75% in split 7-2 vote

The Bank of England kept its benchmark rate at 3.75% on Thursday, with two of nine policymakers backing an immediate quarter-point increase as inflation risks persisted. External member Megan Greene joined Chief Economist Huw Pill in voting to lift the rate to 4%. The central bank lowered its forecast for peak inflation this year to 3.25% from 3.6% in April, citing a recent drop in oil prices. UK inflation is still running at 2.8%, above the bank’s 2% target, but officials also pointed to weaker demand, softer pay growth and a loosening labor market. Data released earlier Thursday showed 64,000 jobs have been lost since the Iran war began in February, while GDP fell 0.1% in April.