Bank of England Faces Decision on Interest Rates Amid Rising Inflation

The Bank of England is expected to keep interest rates unchanged for the sixth time this year, but experts warn it 'needs to be ready' to hike rates if energy prices continue to surge.

Most economists predict the Monetary Policy Committee (MPC) will hold rates at 3.75% at its next meeting on September 17, following a 'wait-and-see' approach due to the ongoing Middle East conflict and its impact on the UK economy.

However, three members of the nine-person MPC, Huw Pill, Megan Greene, and Catherine Mann, voted to hike rates to 4% at the last meeting, and economists expect them to do so again.

The decision is largely seen as a done deal, but attention will focus on the committee's communications, particularly whether the doves have moved towards accepting future rate rises.