The Bank of England has kept Bank Rate at 3.75%, choosing to hold policy steady as inflation remains above target and uncertainty over global energy prices continues to shape the outlook.

The Monetary Policy Committee voted 7-2 at its June meeting to maintain the rate. Two members preferred a 0.25 percentage point increase to 4%, according to the Bank's published minutes. The Office for National Statistics separately reported that CPI inflation was 2.8% in the 12 months to May 2026, unchanged from April and still above the Bank's 2% target.

The decision affects mortgage borrowers, savers and businesses waiting for clearer signals on whether borrowing costs will rise again or stay on hold. The split vote also shows that inflation risk has not disappeared, even as some price pressures have eased.