Bank of England Keeps Interest Rates on Hold Despite Rising Inflation

The Bank of England has kept its main interest rate at 3.75% despite rising inflation, but hinted that it may raise rates soon to combat the impact of higher global energy costs.

This decision was widely anticipated by economists, with six members of the Monetary Policy Committee voting to keep rates unchanged and three backing a quarter-point increase to 4%.

Despite keeping borrowing rates on hold, financial markets are anticipating an interest rate hike in the near future, possibly at one of the next two policy meetings in November or December.

Bank Governor Andrew Bailey stated that higher global energy costs have had a limited effect on price and wage setting in the UK so far, but this volatility will persist and increase its impact on inflation.