Bank of England Expected To Hold Rates At 3.75% As Inflation Rises To 3.1%

The Bank of England is expected to keep interest rates unchanged at 3.75% for a sixth consecutive meeting on Thursday, even as UK inflation accelerated to 3.1% in August from 2.9% in July, according to BBC. Policymakers on the nine-member Monetary Policy Committee have been weighing higher global energy prices, the Middle East conflict and recent rate rises by the European Central Bank and US Federal Reserve. The Bank rate is due to be announced at 12:00 BST. BBC reported that governor Andrew Bailey previously said rates may need to rise further if the conflict continues and oil prices stay above $100 a barrel. Major lenders have already raised new fixed-rate mortgage costs, with Moneyfacts saying the average two-year fixed residential mortgage rate is 5.77% and the average five-year rate is 5.83%.