Bank of England Holds Interest Rates Steady Amid Inflation Concerns

The Bank of England's Monetary Policy Committee held interest rates steady at 3.75%, marking a fifth consecutive meeting without a change, despite persistent inflationary pressures.

Economists had widely expected the MPC to hold rates, with three of its members voting for an increase to 4%.

Markets will now focus on the Bank's updated inflation and growth forecasts, as well as Governor Andrew Bailey's comments, for clues on the future path of interest rates.

Recent economic data has presented a mixed picture, with inflation easing to 2.6% in June, while wage growth slowed and unemployment remained stable, reducing immediate pressure for tighter monetary policy.

However, renewed tensions in the Middle East have pushed oil prices higher, fuelling concerns that inflation could remain above target for longer than previously anticipated.