The Bank of England has maintained the base interest rate at 3.75%, though it issued a firm warning that hikes are looming. The primary driver for this hawkish shift is the ongoing conflict in Iran, which continues to exert significant inflationary pressure on the UK economy.
The Committee’s Stance
The Monetary Policy Committee (MPC) reached a near-unanimous 8-1 decision to keep rates steady. The lone dissenter was Chief Economist Huw Pill, who advocated for an immediate increase to 4%.
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