BoE Holds Off Rate Hike as Inflation Threat Looms

The Bank of England's Monetary Policy Committee (MPC) decided to keep the base rate on hold at 3.75% in its latest decision, despite warning that interest rates will have to rise unless global energy costs ease.

Bank Governor Andrew Bailey said rising global energy costs were having a 'limited effect' on price and wage setting in the UK so far, but added that this would worsen over time, leading to higher inflation.

The MPC's decision came as markets predicted that the Bank will raise interest rates at its next meeting in November, with potentially three 0.25 percentage point increases next year.