Bank of England Holds Rates Steady Amid Rising Inflation

The Bank of England is set to maintain its interest rates at 3.75% for the sixth consecutive time, despite rising inflation and a strengthening economy.

Economists expect the Monetary Policy Committee (MPC) to hold rates steady at its meeting on September 17, but some experts warn that policymakers need to be prepared to act if energy prices continue to surge.

The UK Consumer Prices Index (CPI) inflation rose to 2.9% in July, up from 2.6% in June, and is expected to increase further due to the upcoming energy price cap hike.

However, services inflation fell from 3.6% to 3.4%, indicating a lack of second-round effects, which some experts believe could prevent policymakers from raising interest rates immediately.