Bank of England's Rate Hold Ignites Warning of Potential Future Hikes

Brits should prepare for potential interest rate hikes as the Bank of England's decision to hold rates at 3.75% has been met with warnings from experts.

The Bank's monetary policy committee voted six to three to keep its key base interest rate at the current level, but warned that further escalation in the Iran war could drive inflation above 4% next year.

Ed Monk, a pensions and investment specialist at Fidelity International, said 'this may well be the calm before the storm', warning households to 'brace for borrowing costs to rise' in the months ahead.

The Bank of England itself warned that an 'adverse scenario' involving a prolonged war in Iran could drive UK inflation to a peak of 4.5% by the middle of 2027.