Bank of England holds rate at 3.75% in split 6-3 vote
Why it matters: Three policymakers backed a quarter-point hike as energy shocks kept inflation risks tilted upward.
The Bank of England left its benchmark interest rate unchanged at 3.75% on Thursday, with the Monetary Policy Committee voting 6-3 to hold. Chief economist Huw Pill and external members Megan Greene and Catherine Mann backed a 25-basis-point increase, up from two dissenters in June. The bank pointed to easing domestic price pressures, with UK inflation falling to 2.6% in June, but warned that energy prices still pose upside risks. Officials said they stand ready to act if inflation proves more persistent, while markets trimmed expectations for further tightening after the decision. Two-year gilt yields fell and traders priced in 35 basis points of tightening by December.