Review: BoE Remains Committed to its “Active Hold,” With Two Dissenters Emerging

In this paper, we discuss:

• The BoE’s decision to keep Bank Rate unchanged at 3.75%, with two members dissenting in favour of a hike;
• Why most policymakers remain committed to an “active hold” despite persistent inflation risks;
• How the Iran-related energy shock is influencing the UK inflation outlook and monetary policy debate;
• How markets have repriced the UK rate outlook amid geopolitical uncertainty and higher inflation risk premia.

Download PDF: BOE Review – June 2026