Bank of England Keeps Interest Rates Steady Amid Global Economic Turmoil

The Bank of England has decided to keep interest rates at 3.75% despite rising inflation, fueled by the ongoing conflict in the Middle East and escalating energy prices.

Andrew Bailey, the Bank's governor, warned that if the volatility persists, they may need to raise borrowing costs to ensure inflation falls back to their 2% target.

The Bank also announced a plan to sell billions of pounds in UK government bonds back to the Treasury to avoid fueling turbulence in the gilt market.

Despite this, three members of the Monetary Policy Committee voted against keeping rates unchanged, calling for an immediate quarter-point increase.