Bank of England Holds Rates Amid Rising Inflation Concerns

The Bank of England held its policy rate at 3.75% in a split vote, as expected by most economists in a Bloomberg poll.

According to Governor Andrew Bailey, higher energy costs have had little effect on prices and wages so far, but he warned that the bank would be more likely to raise rates if the Middle East conflict continues.

The UK inflation rate has risen to 3.1% and is forecast to climb above 4% as higher energy costs feed through the broader economy.