Bank of England Eyes Rate Hikes Amid Energy Price Pressures

The Bank of England held its key interest rate at 3.75 per cent on Thursday and signaled a more cautious approach to monetary policy due to higher energy prices.

UK inflation reached 3.1 per cent in August, above the Bank's 2 per cent target, with energy costs being a major source of pressure.

The central bank warned that inflation could exceed 4 per cent in early 2027 if energy prices remain elevated, as higher costs gradually feed through to household bills, transport, and product prices.