Bank of England governor warns UK public to expect higher costs this year

Two members of the monetary policy committee voted for a quarter-point rise but Bank argued that rapid reaction risked creating volatility. Photograph: Tolga Akmen/EPA

The governor of the Bank of England has warned consumers to expect higher costs this year as a result of the conflict in the Middle East, despite falling oil prices as the US and Iran signing an initial peace deal.

Speaking after the Bank kept interest rates on hold at 3.75%, Andrew Bailey said there was “still some inflationary pressure in the pipeline” after the conflict pushed up energy prices.