BOE Holds Interest Rate Amid Ongoing Middle East Conflict

The Bank of England held its benchmark interest rate at 3.75 percent on Thursday, but warned that a hike might be needed due to the ongoing Middle East war and its impact on energy prices.

Bank of England governor Andrew Bailey said that 'so far higher energy costs have had a limited effect on price and wage setting in the UK.'

However, he added that 'the longer this volatility persists, the bigger the impact it will have on inflation, and the more likely it is we will need to raise' the benchmark rate.

Three members of the BoE's monetary policy committee voted to increase the UK rate by 0.25 percentage points, but Bailey joined the five remaining members in calling for no change.