Bank of England Holds Rates Steady Amid Rising Inflation Pressure

The Bank of England has decided to keep interest rates on hold at 3.75% for the sixth consecutive meeting, despite rising inflation and pressure from other major central banks to increase rates.

Inflation hit a new high of 3.1% in August, driven by higher energy costs due to the ongoing conflict between Iran and other countries. The Bank's Governor Andrew Bailey acknowledged that this volatility will eventually have a bigger impact on prices and wages in the UK, but said that so far it has had a limited effect.

Mortgage rates are at their highest level in three years, with the average five-year fixed deal rising to 5.87% according to Moneyfacts. This comes as official figures showed inflation rose to 3.1% in August, putting pressure on the Bank of England to increase interest rates.