BOE Expected to Hold Interest Rates Amid Rising Inflation

The Bank of England is expected to keep interest rates unchanged at 3.75% on Thursday, despite inflation in the United Kingdom rising to a five-month high.

This decision comes as fuel prices continue to rise due to the fallout from the Iran war.

Economists expect a majority of the nine-member Monetary Policy Committee to vote for keeping interest rates unchanged, citing that higher inflation is not yet feeding into underlying prices and wages.

According to official figures released Wednesday, rising fuel prices and airfares were the main contributors to the increase in the U.K.'s consumer prices index to 3.1% in August from 2.9% the month before.