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The Monetary Policy Committee has opted for caution, maintaining the base rate at 3.75 per cent despite internal calls for further tightening. Persistent inflationary risks from energy markets continue to weigh on the Bank's outlook for the remainder of the year.

The Bank of England’s Deputy Governor has laid the groundwork for potential future tightening, citing persistent inflationary risks. As the headline rate sits stubbornly above target, the Monetary Policy Committee faces a delicate balancing act.
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