UK Keeps Bank Rate at 3.75% as Middle East War Clouds Energy Outlook

The Bank of England left Bank Rate at 3.75% in an 8-1 vote, with one dissenter pushing for a hike, citing the Iran-led energy shock and renewed inflation risks. Officials warned energy costs may rise further and stressed policy can’t control energy prices, though tighter financial conditions and a softening labor market could help cool inflation; second‑round wage effects remain a risk and a rate hike remains unlikely unless activity stays strong.