- The Bank of England 's Monetary Policy Committee has voted 6-3 to keep interest rates on hold at 3.75 per cent for the sixth consecutive meeting, marking its final rate decision ahead of next month's Budget .
- The central bank maintained the base rate despite mounting pressure to introduce a hike following an uptick in inflation to 3.1 per cent, which has been largely driven by surging energy costs linked to the war in Iran .
- The decision reflects a complex domestic economic picture, as the Bank navigates a slightly growing economy alongside 5 per cent unemployment, falling job vacancies and slowing wage growth.
- Most analysts and financial markets now predict an interest rate rise in November , with reports suggesting the base rate could reach at least 4 per cent before the end of the year as cost-of-living pressures intensify.
- Major lenders have already begun increasing mortgage rates following a spike in bond markets, prompting personal finance experts to advise homeowners to secure new mortgage deals as early as possible.
IN FULL
Bank of England holds UK interest rates despite inflation hike
