Recent economic data is likely to have bolstered the MPC’s confidence that inflation is on a sustainable downward path. However, a significant degree of uncertainty surrounding the economic outlook means the Committee is unlikely to commit to a future rate cut at this stage.

Despite the anticipated hold, the next reduction in the Bank Rate is still forecast for the August meeting, as evidence of disinflation is expected to solidify in the coming months.

Matt Swannell, Chief Economic Advisor to the EY ITEM Club, commented: “Since its last meeting, the MPC has made two things very clear: its assessment of domestic inflationary pressures will determine how quickly interest rates are cut, and the uncertainty around the UK’s outlook is unusually significant.”

He added that recent data should provide “more confidence that the disinflation seen so far is not a flash in the pan”.

Mr Swannell pointed to a loosening labour market, with businesses scaling back on hiring and wage pressures likely to fall below the Bank of England’s May projections. Both headline and services inflation are also broadly tracking the Bank’s forecasts.

Nevertheless, lingering economic uncertainty is expected to make the MPC cautious. “The majority of the Committee is still more concerned that cutting too quickly is a larger risk than cutting too slowly,” Mr Swannell explained. This will likely lead the more hawkish members to favour maintaining the current rate. Conversely, more dovish members may argue that recent labour market data signals a risk of delaying rate cuts for too long.