Bank of England Keeps Rates Steady, Warns of Potential Hike if Energy Prices Persist

The Bank of England has voted to keep interest rates at 3.75%, but warned that they may have to hike again if energy prices don't come down. The 6-3 vote was in line with market expectations, and the central bank's decision not to raise rates now means it will be closely watching oil and natural gas prices in the coming months.

The Bank of England has been facing pressure to raise interest rates due to high inflation, which reached a five-month high of 3.1% in August. However, the central bank's chief economist Pill, along with MPC members Greene and Mann, voted to keep rates at 3.75%, arguing that higher energy prices were a one-time shock.

The Bank of England has warned that if oil and natural gas prices remain high, it may have to hike interest rates in November. This would be the second rate hike this year, following a 0.25% increase in August.