The Bank of England held interest rates at 3.75%, with the MPC voting 7-2 to pause rather than raise borrowing costs. The decision reflects a slightly less worrying inflation backdrop after UK CPI held at 2.8% in May and oil prices fell following the US-Iran peace deal, though the BoE warned that earlier energy rises still risk feeding into prices and wages. For households, this keeps pressure on mortgages and loans, but lenders may trim fixed-rate deals if markets stay calmer. The message is not dovish: two members wanted a hike, and traders still see a possible rise this year. Sterling was little changed after the decision, while UK rate expectations were broadly steady.