BoE Holds Fire on Interest Rates as Inflation Rises

The Bank of England is expected to keep interest rates at 3.75% on Thursday despite rising inflation, according to most economists.

This would be the sixth time in a row that the Monetary Policy Committee (MPC) has kept rates unchanged since December.

Economists expect policymakers to continue with a 'wait-and-see' approach, 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.

Rising prices in the UK have led to a five-month high in Consumer Prices Index (CPI) inflation, which increased to 3.1% in August from 2.9% in July.