BOE Holds Rates as Inflation Hits 3.1%

The Bank of England is expected to keep its benchmark interest rate unchanged at 3.75% on Thursday, despite rising inflationary pressures.

Consumer Prices Index (CPI) inflation rose from 2.9% in July to 3.1% in August, driven by higher fuel and energy costs, as well as increased global energy prices amid the conflict in the Middle East.

Economists expect these higher costs to continue feeding through to household bills, food, and fuel prices, although rates are expected to remain unchanged for now.

However, the possibility of an increase later this year is growing, with three members of the Monetary Policy Committee (MPC) voting to raise rates to 4% at the previous meeting.