BoE Holds Interest Rates Amid Rising Inflation and Budget Looms

The Bank of England's Monetary Policy Committee has voted 6-3 to keep interest rates on hold at 3.75 per cent for the sixth consecutive meeting, marking its final rate decision ahead of next month's Budget.

This decision comes as inflation rises to 3.1 per cent, largely driven by surging energy costs linked to the war in Iran.

The central bank maintained the base rate despite mounting pressure to introduce a hike, reflecting a complex domestic economic picture with a slightly growing economy alongside 5 per cent unemployment, falling job vacancies, and slowing wage growth.

Most analysts and financial markets now predict an interest rate rise in November, with reports suggesting the base rate could reach at least 4 per cent before the end of the year as cost-of-living pressures intensify.