The Bank of England held its Bank Rate at 3.75% at its February meeting, but the decision exposed deep divisions within the Monetary Policy Committee. The vote was narrowly split 5–4, with four policymakers supporting an immediate 25 basis point cut, underlining the increasingly delicate balance between easing inflation pressures and a fragile economic backdrop.

The dollar index climbed above 97.5, reaching a near two-week high as expectations shifted toward a slower pace of Federal Reserve easing.