Bank of England Holds Interest Rates Amid Rising Inflation Concerns

The Bank of England has kept interest rates at 3.75% for the fifth consecutive time, despite warning that energy prices and an AI-driven memory chip shortage will push inflation higher.

According to forecasts by the central bank, food inflation is set to rise again later this year due to supply issues linked to hot and dry weather affecting prices for shoppers.

The majority of the Bank's Monetary Policy Committee (MPC) voted in favour of keeping interest rates at 3.75%.

Bank of England governor Andrew Bailey said inflation has fallen faster than expected, but warned that the conflict in the Middle East continues to cause significant uncertainty over the global economy.