BoE Holds Fire on Rates as Energy Prices Worry Markets

The Bank of England is expected to keep interest rates on hold at 3.75% when it meets on September 17, according to ING.

This decision comes as energy prices remain high, with oil and natural gas prices a concern for inflation.

However, ING believes that the Bank's doves will hold their ground and reiterate that the risk of second-round effects on inflation remains low.

The bank's base case is that rates will stay put until next year, when it will cut rates twice - in April and November.

ING also expects the Bank to slow down its quantitative tightening program to £50bn for the next 12 months, down from £70bn last year.