Bank of England holds rates

The Bank of England stood its ground as the last major central bank to resist interest rate increases despite growing inflation pressures.

Bailey hints at November hike

Governor Andrew Bailey signalled a hike could be on the way but fought shy of taking action for now, even after counterparts in the US and Europe did so.

Inflation pressures rise

Rising oil and gas prices due to the Iran war have intensified global price pressures and caused bond market jitters.

Energy price surge forecast

The Bank predicts energy prices will surge 24 per cent in January, helping lift inflation past 4 per cent, more than twice its 2 per cent target.

Monetary Policy Committee vote

The vote was split at six to three in favour of leaving rates at 3.75 per cent, though the minority backing a hike included chief economist Huw Pill.

Bailey's inflation concerns

Bailey said there was 'very limited evidence' of the energy price shock spreading through the economy causing 'second-round' inflation effects.

“Bailey said there was 'very limited evidence' of the energy price shock spreading through the economy causing 'second-round' inflation effects.”

Global rate hike cycle

Other experts said the Bank was signalling a probable hike at the next Monetary Policy Committee meeting in November.

Gilts sales pause

By pausing sales of gilts for six months and halting sales of longer-date gilts entirely, the Bank reduced borrowing costs for Chancellor John Healey.