BoE Set to Hold Fire on Interest Rates Amid Inflation Fears

The Bank of England is expected to keep interest rates at 3.75% when its Monetary Policy Committee (MPC) meets on Thursday, despite rising inflation and cost-of-living fears.

This would be the sixth consecutive occasion that the MPC has chosen not to raise rates since December, with analysts believing policymakers will continue to adopt a 'wait-and-see' strategy.

However, three members of the nine-person MPC, Huw Pill, Megan Greene, and Catherine Mann, voted for a rate hike to 4% at the last meeting, and economists expect them to do so again this time around.

Rising prices in the UK have seen Consumer Prices Index (CPI) inflation increase to 3.1% in August, from 2.9% in July, marking a five-month high and pushing it further away from the Bank's 2% target rate.

Experts warn that households face another rise in energy bills next month, which could prompt the Bank to raise interest rates in the months ahead.