BOE Holds Rate at 3.75%, Hawkish Dissent Grows to Three Members

The Bank of England held its benchmark interest rate at 3.75% on Thursday, matching broad market forecasts. The decision, however, came with a sharper internal divide than before. A 6-3 vote kept rates on hold, with three Monetary Policy Committee members dissenting in favor of a quarter-point hike. That represents a hawkish swing from the previous meeting, where only two members voted to raise rates.

Despite the growing push for tighter policy, financial markets showed little reaction. Sterling and rate-sensitive assets traded with little direction following the announcement, suggesting traders had already priced in the possibility of a more divided MPC.

Policymakers who backed a hike cited lingering inflation risks, though the majority judged that keeping rates steady was appropriate for now. The split leaves the door open to future tightening if price pressures prove sticky.