Bank of England Holds Rates Despite Rising Inflation

The Bank of England has kept its main interest rate at 3.75% despite higher inflation in the UK, which rose to a five-month high due to fuel price increases following the Iran war.

Some economists are forecasting U.K. inflation to rise from the current annual rate of 3.1%, already above the Bank of England's target of 2%, in coming months as households face another increase in their domestic energy bills starting in October.

The consensus in financial markets is that interest rates will be raised at one of the next two meetings, either in November or December.