The Bank of England has maintained interest rates at 4.75% despite rising inflation hitting 2.6%. The decision reveals deep concerns about the sluggish economy and the potential for inflation to rise further. With three Monetary Policy Committee members voting for a rate cut, the central bank is under pressure to consider future decreases if economic conditions do not improve. Experts cite increased wage growth and government policies as significant factors affecting inflation and growth, raising questions about the stability of the U.K. economy moving into the new year.