Interest rates hold expected but Bank of England facing tough choices
Forecasts of further rises in the inflation rate mean some analysts expect the Bank to act by the end of the year.
The Bank of England is set to maintain interest rates at 3.75% in a decision due Thursday, despite rising global energy prices and conflicts in the Middle East pushing up inflation. The nine-member Monetary Policy Committee (MPC) has been deliberating amid these challenges. Bank of England governor Andrew Bailey warned that sustained conflict and high oil prices could prompt further rate hikes.
Inflation rose to 3.1% in August, up from 2.9% in July, signaling that it has not peaked yet. The Bank aims to keep inflation at a 2% target. The European Central Bank and the US Federal Reserve have also raised interest rates in response to similar inflation pressures. While higher rates benefit savers with better returns, they increase borrowing costs for consumers.
Financial experts advise households to assess their personal circumstances and adjust their financial plans accordingly.
Written by urgent.news from BBC News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
