"Central Banks Hold Steady on Interest Rates Amid Economic Uncertainty"

The Bank of England has left the bank rate unchanged at 5.25%, with a vote of 8-0-1, as expected. The decision reflects a belief that the economy is moving in the right direction but is not yet at the point to cut interest rates. While inflation has fallen back sharply, the restrictive monetary policy stance is impacting the real economy and labor market. The bank remains prepared to adjust monetary policy as warranted by economic data to return inflation to the 2% target sustainably. The pound has weakened slightly in response to the decision, with traders finding more comfort in the possibility of a rate cut in August.