BoE Keeps Interest Rates Steady, Warns of Potential Future Hike

The Bank of England (BoE) has decided to keep interest rates steady at 3.75% in its latest meeting, despite a recent spike in inflation to a five-month high.

The decision was widely anticipated, with six members of the Monetary Policy Committee (MPC) voting to maintain current rates, while three others backed a quarter-point increase to 4%.

BoE Governor Andrew Bailey stated that higher global energy costs have had a limited effect on price and wage setting in the U.K. so far.

However, he warned that the longer this volatility persists, the bigger the impact it will have on inflation, making it more likely for the bank to raise interest rates in the future to ensure prices fall back to the 2% target.