BOE Leaves Interest Rate Unchanged Amid Rising Inflation

The Bank of England is expected to keep its main interest rate unchanged at 3.75% despite inflation rising to a five-month high of 3.1% in August.

The decision comes as higher pump prices and airfares drove the increase, with economists anticipating that the Monetary Policy Committee will hold rates steady for a sixth consecutive meeting.

David Rees, head of global economics at Schroders, believes that the economic backdrop remains relatively soft, which should constrain the degree to which imported price pressures become embedded in domestic wages and prices.