Bank of England Sticks with Interest Rate Freeze Amid Rising Inflation Fears

The Bank of England is set to maintain its current interest rate of 3.75%, despite rising inflation and increasing pressure for a rate hike.

A majority of forecasters expect the Monetary Policy Committee (MPC) to leave borrowing costs unchanged when it meets on Thursday, marking the sixth consecutive occasion rates have remained at this level since December.

Analysts believe policymakers will continue to favour a 'wait-and-see' strategy, particularly regarding the Middle East conflict and its impact on the UK economy.

However, three members of the nine-person MPC, Huw Pill, Megan Greene, and Catherine Mann, voted to hike rates to 4% at the last meeting, and economists expect the same outcome at the next one.