LONDON (dpa-AFX) - The Bank of England left its key interest rate unchanged, as widely expected, on Thursday.
The Monetary Policy Committee governed by Andrew Bailey, voted 7-2 to hold the bank rate at 3.75 percent.
The current rate remains the lowest since June 2023. Previously, the central bank had reduced the rate by 25 basis points each in August and November last year.
Megan Greene and Huw Pill preferred a quarter-point rate hike citing significant uncertainty about the extent of second-round effects.
Although inflation eased to 2.8 percent in May, it is expected to rise later this year as the effects of higher energy prices continue to pass through.
The committee observed that the policy stance required to achieve the 2 percent inflation target sustainably will depend on the scale and duration of the energy shock, and how it propagates through the economy.
Taking into account risks to the economic outlook, the committee judged that it is appropriate to maintain the interest rate at this meeting.
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