BoE Set to Hold Rates Steady as Energy Prices Surge

The Bank of England is expected to maintain interest rates at 3.75% for the sixth consecutive time this year, but experts warn that policymakers need to be prepared to act if energy prices continue to surge.

Most economists anticipate that the Monetary Policy Committee (MPC) will keep rates unchanged when it meets on September 17, but some members may push for a hike to 4%.

Three MPC members - Huw Pill, Megan Greene, and Catherine Mann - voted in favor of raising rates at the last meeting, and experts expect them to do so again this time.

However, inflation is expected to rise due to increasing energy prices, with the Ofgem's next energy price cap set to kick in from October, which will see household energy bills rise by 4% for a typical dual-fuel household.