The Bank of England has decided to hold interest rates at 4.5%, after cutting the rate last month. The Monetary Policy Committee (MPC) voted by a majority of 8–1 to leave the rate unchanged. Meanwhile, one member decided to vote in favour of reducing it by 0.25%, to 4.25%. Due to global trade policy uncertainty and several US tariff announcements, the MPC was convinced to hold interest rates amidst economic uncertainty. It said: “Based on the committee’s evolving view of the medium-term outlook for inflation, a gradual and careful approach to the further withdrawal of monetary policy restraint is appropriate. “Should there be greater or longer-lasting weakness in demand relative to supply, this could push down on inflationary pressures, warranting a less restrictive path of bank rate.” The MPC concluded that they would continue to monitor the risks of inflation and that monetary policy will need to remain tight until inflation returns sustainably to the 2% target.