Bank of England warns UK should brace for higher inflation due to Middle East war

The Bank of England has left interest rates unchanged at 3.75% but warned that the UK should brace for hikes later this year, as a result of the war in the Middle East. Subscribe to Guardian News on YouTube ► youtube.com
The Bank’s rate-setting monetary policy committee voted to leave borrowing costs on hold on Thursday, with its nine-member committee split 8-1 in their decision. Andrew Bailey, the central bank’s governor, said: 'The war in the Middle East is causing inflation to rise again this year.' He added that the policymakers were monitoring the global situation and its impact on the UK economy 'very closely', but that the decision to hold rates at 3.75% for now is a 'reasonable place given the situation of the economy and the unpredictability of events in the Middle East' Bank of England warns ‘higher inflation is unavoidable’ after leaving interest rates on hold ► theguardian.com
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