The Bank of England maintained its interest rates at 5.25 percent, the highest level since 2008, despite the UK's inflation slowing to 2 percent in May. The decision was based on the need to ensure sustained low inflation, with policymakers emphasizing the importance of inflation staying at the 2 percent target. While there are indications of potential future rate cuts, the central bank remains cautious due to concerns about lingering inflation persistence, particularly in the services sector. The possibility of a rate cut later in the summer remains open, with the next policy meeting scheduled for early August. The decision-making process is finely balanced, and a rate cut in August is anticipated if no unexpected inflationary developments occur.