Bank Holds Interest Rates as Energy and Memory Chips Drive Inflation

The Bank of England has kept interest rates steady for the fifth consecutive time despite concerns that energy prices and a memory chip shortage will drive inflation higher.

According to forecasts by the central bank, consumer price inflation is likely to peak at around 3.2% later this year before steadily easing back towards the Bank's 2% target.

The main driver of inflation is expected to be higher oil prices linked to the Middle East conflict, pushing energy prices higher for households and businesses in the coming months.