The Bank of England is expected to keep Bank Rate unchanged at 3.75%, although policymakers are likely to retain a hawkish bias because inflation risks have increased amid higher energy prices. August CPI rose to 3.1% year-on-year, while producer-price inflation also accelerated, highlighting persistent pipeline pressures. However, weaker labour-market conditions, moderating wage growth and limited evidence of second-round inflation effects support the case for holding rates. Markets expect the July 6–3 vote split to remain, with Pill, Greene and Mann favouring a 25-basis-point hike. The MPC is also expected to slow quantitative tightening from GBP 70 billion to around GBP 50 billion over the next year, largely because fewer gilts are maturing. Active sales may remain near GBP 20 billion, potentially excluding long-dated bonds. Overall, the Bank is likely to wait for clearer evidence that energy-price pressures are becoming embedded in domestic inflation before tightening policy.