Bank of England Holds Interest Rate at 3.75% as Energy Price Hike Impacts Persist

London, Sept 17 (KUNA) -- The Bank of England announced on Thursday that it had kept its interest rate unchanged at 3.75 percent for the fifth consecutive time, warning that rising energy prices due to the war in the Middle East continue to directly affect inflation and interest rates.

In its regular report, the Bank’s Monetary Policy Committee stated that the decision to hold interest rates steady was supported by six of its nine members, while three members voted to raise the rate by a quarter of a percentage point to 4 percent.

The committee noted that the protracted conflict in the Middle East contributed to an additional increase in crude and refined energy prices since its last meeting in June, with prices remaining at higher levels and exhibiting greater volatility compared to pre-conflict conditions.

In this regard, the committee pointed out that the UK’s inflation rate, based on the Consumer Price Index, rose to 3.1 percent in August last year, and projected that inflation would continue to rise in the coming months as the Bank attempts to keep it close to its 2 percent target through monetary measures.

Notably, inflation surged to 3.1 percent last month, driven by increases in energy and fuel prices. (End) M.R.N. / A.M.H.