Bank of England Governor Andrew Bailey has explicitly left the door open for a future interest rate increase, warning that global conditions remain highly uncertain and volatile.
The comments mark a notable shift in tone from the central bank's top official, who previously emphasized that rate cuts were "off the table" while holding borrowing costs steady.
The hawkish signal came as the Monetary Policy Committee (MPC) voted 6-3 to maintain the base rate at 3.75%.
The split vote indicates growing internal debate within the committee regarding the appropriate stance on monetary policy, with a minority of members likely advocating for tighter conditions to guard against inflationary pressures.
Bailey's remarks reflect the Bank of England's broader strategy of maintaining flexibility in the face of external shocks.
With global uncertainty persisting, the central bank is prioritizing the return of inflation to its target over providing immediate relief to borrowers.