The Bank of England held Bank Rate at 3.75% in a 6-3 vote (previous meeting
7-2). Greene, Mann and chief economist Pill voted for a hike. The committee
retained guidance that it is prepared to act if necessary, citing renewed
US‑Iran tensions and recent large energy-price swings. At the same time it said
there are clear signs domestic inflationary pressures are easing and little
evidence the energy shock has raised wage demands or materially passed through
to other goods and services. A majority said policy could change if the war ends
soon; two members said they would consider cuts in that scenario. Governor
Bailey said there is currently little sign of second‑round effects but it is too
early to be complacent given heightened global uncertainty and upside inflation
risks, so holding rates are appropriate.
