BOE Holds Interest Rates Amid Inflation Fears

The Bank of England is expected to hold interest rates at 3.75% on Thursday, marking the sixth time in a row that they have been kept unchanged since December.

Economists are warning that pressure to hike rates is mounting as inflation rises, with Consumer Prices Index (CPI) inflation increasing to 3.1% in August from 2.9% in July.

Prime Minister Andy Burnham has warned of a difficult Budget ahead and hinted at 'difficult decisions' to come after the inflation figures were released on Wednesday.

Economists are forecasting the cost-of-living to rise further, with households facing another rise in their energy bills from next month, which could prompt the Bank to raise interest rates in the months ahead.