BOE Keeps Interest Rates on Hold as Inflation Rises

The Bank of England is expected to keep interest rates at 3.75% this week despite rising inflation, according to most economists.

This would be the sixth consecutive time that the Monetary Policy Committee (MPC) has kept rates on hold since December.

Experts think policymakers will continue to favor a 'wait-and-see' approach, particularly in light of the Middle East conflict and its impact on the UK economy.

However, three members of the nine-person MPC, Huw Pill, Megan Greene, and Catherine Mann, voted to hike rates to 4% at the last meeting, and economists expect the same outcome this time around.

CPI inflation has increased to 3.1% in August, a five-month high, and remains above the Bank of England's 2% target rate.