The Bank of England has held interest rates at 3.75 per cent but signalled it may need to increase borrowing costs in the coming months if the Iran war energy shock continues to batter the global economy.
The Monetary Policy Committee voted eight to one to keep the UK central bank’s key rate unchanged for the third consecutive meeting.
Huw Pill, BoE chief economist, backed an immediate quarter-point rate rise to mitigate “upside risks to price stability”, according to minutes of the meeting published on Thursday.
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