Bank of England holds rate at 4.25% amid global uncertainty

Inflation rose to 3.4 per cent in May from 2.6 per cent in March, driven by regulated and past energy price increases. Though inflation is expected to ease towards the 2 per cent target next year, there is a need for a cautious, data-dependent stance, maintaining a restrictive policy to curb lingering inflationary pressures, the MPC said in a statement.

The UK economy remains subdued, with signs of slack in the labour market and moderating wage growth. The MPC acknowledged this weakness but stressed that policy would remain tight until inflation risks are sufficiently contained. The Bank also flagged geopolitical volatility and energy price spikes as key concerns, underlining that monetary policy is not on a pre-set course.

ALCHEMPro News Desk (KD)