The Bank of England decided to keep its key interest rate unchanged at 3.75%. The vote was 6 to 3, with three policymakers supporting a rate hike and none supporting a cut, reflecting internal hawkish divisions. The Bank of England expects inflation to peak at 3.2% in the fourth quarter and return to the target level in early 2028, but warned that inflation could rise to 4.5% if oil prices remain above $100 per barrel. Policymakers indicated that interest rate cuts remain a possibility in the future if inflation risks subside.