The Bank of England keeps interest rates unchanged at 4.25% and the vote result is divided with three people calling for a 25 basis point rate cut.

The Bank of England has kept interest rates unchanged at 4.25%, with this vote being more divided than expected. Against a backdrop of escalating geopolitical tensions, policymakers are responding to signs of a slowdown in the labor market and weakening economic growth. This decision keeps rates on track for a possible 25 basis point cut in August. Of the 9 members of the Bank of England's Monetary Policy Committee, 6 voted to keep rates unchanged while 3 advocated an immediate 25 basis point cut. "Interest rates continue to trend downwards gradually," said Bank of England Governor Andrew Bailey. "The current global situation is highly uncertain. In the UK, we are seeing signs of a slowdown in the labor market. We will closely monitor the impact of these signs on consumer price inflation." The Committee noted that oil prices have surged by more than 10% since Israel took military action, threatening to push inflation even higher. The bank stated it will "closely monitor developments and their potential impact on the UK economy."