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Bank of England Maintains Key Rate at 3.75% in June Meeting

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The Bank of England on Thursday held its key rate steady at 3.75% as it noted a decline in energy prices following the announcement of a preliminary deal between the US and Iran to end the war in the Middle East.

The decision is consistent with the consensus estimate for the month.

The central bank's Monetary Policy Committee voted 7-2 in favor of a hold, with two members voting to raise the bank rate by 25 basis points to 4%. The MPC said it will continue to closely monitor the situation in the Middle East and the impact of the energy price shock on the UK economy and the inflation outlook.

Based on the latest government data, the UK's annual inflation rate came in at 2.8% in May, unchanged from the previous month, with the core rate ticking up to 2.6% from 2.5%. The BoE's medium-term inflation target stands at 2%.

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