The Bank of England kept interest rates at 3.75% following a tighter 6-3 vote, as policymakers warn that ongoing energy price volatility could keep inflation elevated.

Investors are weighing central bank policy paths against persistent inflation and geopolitical instability as key Eurozone and UK economic data releases loom.

In his first congressional testimony, Federal Reserve Chairman Kevin Warsh vowed to implement a regime change in how the central bank conducts its business. He has launched five task forces to evaluate policy frameworks while managing ongoing economic challenges.

While traditional economic indicators suggest stability, households are struggling with record debt levels and inflation, leading to public pessimism.

The UK's headline Consumer Price Index stood at 2.8 percent for the 12 months to May 2026, leading the Bank of England to hold interest rates at 3.75 percent.