Bank of England Keeps Interest Rates Steady Amid Rising Inflation

The Bank of England kept interest rates at 3.75% for the sixth time in a row, despite rising inflation linked to the war in the Middle East.

Three members of the bank's monetary policy committee voted to raise rates to 4%, but were outvoted by six others.

Lenders have been increasing fixed mortgage rates recently due to expectations of higher interest rates.

The Bank expects inflation to rise to 3.75% by the end of 2026 and peak at 4% in 2027, mainly driven by energy bills.

Bank Governor Andrew Bailey said that if energy prices continue to increase, the Bank may need to raise interest rates to keep inflation at its target rate of 2%.