Interest rates held at 3.75% but Bank prepared to raise them if Iran war goes on

The Bank of England said UK inflation had been falling but was expected to rise again later this year (Henry Nicholls/PA) - (PA Wire)

Interest rates have been held at 3.75% for the fifth successive time but the Bank of England indicated that it was prepared to hike them should the war in Iran go on for longer.

The decision followed a split vote on the Bank’s Monetary Policy Committee (MPC) with six voting in the favour of keeping the rate steady, while three called for an increase to 4%.