The Bank of England kept rates steady but revealed a 6-3 vote split, with three policymakers favoring a 25 bps increase.
The Bank of England left its benchmark rate unchanged at 3.75% in July, aligning with market expectations. The decision followed a 6-3 vote, with external members Greene, Pill, and Mann advocating for a 25 bps hike to curb inflation risks.
The prior meeting had seen a 7-2 vote to hold, with fewer dissenters. Policymakers noted persistent upside risks to inflation, driven by energy shocks and potential second-round effects, though recent data showed limited evidence of such pressures.
The BOE reiterated its readiness to adjust policy as needed to ensure inflation returns sustainably to the 2% target, citing evolving geopolitical risks in the Middle East.