Bank of England Holds Rate at 3.75% as Mann Joins Hawks

The Bank of England kept its Bank Rate unchanged at 3.75% in a widely expected decision. The vote split widened to 6-3 from 7-2 in June, with external member Catherine Mann switching to the hawkish camp, aligning with the two existing dissenters who favored a hike.

The central bank presented three scenarios for the policy outlook, all heavily contingent on geopolitical risks, particularly the situation in the Middle East. No immediate rate change is forecast, but the BoE stressed that any escalation could quickly alter the path.

Markets showed little reaction to the hold, as the outcome was priced in, but attention now turns to upcoming data and geopolitical headlines.