The Bank of England held its benchmark interest rate at 3.75 per cent, but it has warned that a hike might be needed as the US-Israel war on Iran pushes up energy prices.
“So far higher energy costs have had a limited effect on price and wage setting in the UK,” Bank of England governor Andrew Bailey said.
“But the longer this volatility persists, the bigger the impact it will have on inflation, and the more likely it is we will need to raise the benchmark rate,” he added.
