Bank Stays Firm on Rates as Energy Prices Loom Large

The Bank of England is expected to keep interest rates unchanged for the sixth time this year at its next meeting on September 17.

Most economists predict that the Monetary Policy Committee (MPC) will hold rates at 3.75% as policymakers continue a 'wait-and-see' approach due to concerns about the Middle East conflict's impact on the UK economy.

However, three members of the MPC - Huw Pill, Megan Greene, and Catherine Mann - voted to hike rates to 4% at the last meeting, and economists expect them to do the same again this time.

The decision is seen as a done deal, but attention will focus on whether the committee's communications have changed to accept the possibility of future rate rises.

UK Consumer Prices Index (CPI) inflation rose to 2.9% in July, and experts warn that rising energy prices could push inflation even higher, prompting policymakers to raise interest rates in the months ahead.