Bank of England holds interest rates at 3.75% despite UK inflation rising to 3.1%

On Thursday, the Bank of England kept its main interest rate unchanged at 3.75% for the sixth consecutive meeting, despite UK inflation rising to a five-month high of 3.1% in August. The increase was largely due to higher fuel prices and airfares, linked to the Iran war's impact on oil and gas supplies. Economists expect rates to rise in November or December as energy bills increase. The decision was supported by a majority of the Monetary Policy Committee, who want more evidence that inflation will feed into wages and prices.