Policymakers left borrowing costs unchanged while warning that the last stretch of disinflation may be the hardest.
The decision was widely expected, but the tone of the accompanying statement caught some investors off guard, striking a more cautious note than recent commentary had suggested.
Services inflation, sticky and stubborn, remains the committee's chief concern heading into the second half of the year.
Higher for longer, again
Bond yields ticked higher as traders pushed back their bets on the first cut.
"We would rather do too much for a little longer than too little too soon."
Analysts point to a handful of forces driving the story forward:
- Unchanged policy rate for a third consecutive meeting
- A revised inflation forecast nudged upward
- Split voting hinting at internal debate
Attention now turns to next month's labour-market data, which could prove decisive for the timing of any pivot.