The Bank of England’s Monetary Policy Committee decided to leave the Bank Rate unchanged at 3.75% after a meeting on Thursday, but warned of a high chance inflation would stay above the target in 2027. The decision was made in a 6-3 vote, with three members voting to raise rates by 25 basis points to 4%. The decision to keep rates on hold was unanimous, but the outcome was less dovish than markets had anticipated. A combination of geopolitical tension and volatile oil prices accounts for the reluctance of the central bank to loosen monetary policy, despite generally benign domestic circumstances. Andrew Bailey, the Bank of England Governor, argued that current worldwide headwinds make cutting borrowing costs unsuitable.