The Bank of England has decided to keep its base interest rate steady at 3.75% for the sixth straight meeting, despite an inflation rate of 3.1% that surpasses the 2% target. The Monetary Policy Committee's vote was split, with six members in favor of maintaining the rate and three pushing for an increase to 4%.
Governor Andrew Bailey noted that the volatility in energy prices could lead to a potential rate increase in the future. Furthermore, the central bank has halted auctions of its remaining government bond portfolio, which amounts to £488 billion.
