Bank of England Stays Put as Inflation Hits Five-Month High

The Bank of England is widely expected to maintain interest rates at 3.75% when it meets on Thursday, despite rising inflation and growing pressure to hike rates.

Rising prices in the UK have pushed Consumer Prices Index (CPI) inflation up to 3.1% in August, a five-month high that puts it further away from the Bank's 2% target rate.

Economists are forecasting another rise in household energy bills next month, which could prompt the Bank to raise interest rates in the months ahead.

However, three members of the nine-person Monetary Policy Committee (MPC), Huw Pill, Megan Greene and Catherine Mann, have voted to hike rates to 4% at previous meetings, and economists expect them to do so again this time around.