The Bank of England predicted British inflation will top 4% early next year as it held interest rates unchanged on Thursday, and Governor Andrew Bailey warned explicitly that prolonged conflict in the Middle East may require tighter policy.
Alongside an unexpected decision to pause all the BoE's active sales of gilts for the next six months, the Monetary Policy Committee again voted 6-3 to keep interest rates at 3.75%. Three members voted for a rise to 4%, in line with economists' median forecast in a Reuters poll.
