BoE Holds Rates, Hints at Future Hike Amid Inflation Concerns

The Bank of England has held interest rates at 3.25% but signaled that it may increase them soon to combat inflationary pressures.

The decision was expected, with six members of the Monetary Policy Committee voting to keep rates unchanged and three backing a quarter-point increase to 4%.

Financial markets believe there's a high chance that the bank will raise interest rates at one of its next two policy meetings in November or December.

Bank Governor Andrew Bailey warned that higher global energy costs could have a bigger impact on inflation and lead to a rate increase.