The Bank of England (BoE) has kept its key interest rate unchanged at 3.75%, its Monetary Policy Committee voting six to three to hold steady. The decision comes as the central bank projects inflation will rise in the near term, partly due to uncertainties stemming from the Iran war. At the same time, the BoE expects the UK economy to grow more than previously forecast this year. Policymakers are balancing the inflationary threat from US-Iran tensions against signs that domestic price pressures are easing more quickly than anticipated. The three dissenting committee members had favored a change, though the report does not specify their preferred direction. The hold leaves the rate at its current level, a slight decline from earlier highs as inflation has moderated from double-digit peaks. The BoE's updated forecasts suggest that while the economy is performing better than expected, the path of inflation remains uncertain given global geopolitical risks. The decision was widely anticipated by markets, which had priced in a high probability of no change.