Bank of England holds interest rates – but raise this year ‘not off the table’

Read our Privacy noticeThe Bank of England (BoE) has held interest rates at 3.75 per cent once more, despite an expectation of climbing inflation in the coming months. Raising interest rates is the Bank’s primary tool to try to counter that and prevent inflation spiralling out of control. Millions of homeowners have moved off mortgage deals signed when interest rates were far lower, meaning repayments are considerably higher now. open image in gallery Bank of England holds interest rates as energy prices set to lift inflationRob Morgan, chief investment analyst at Charles Stanley Direct, agreed the direction of travel could continue to be sideways for some time – if energy markets can stabilise. “But until they are more confident that higher energy costs will not ignite wider price escalation or feed into wage demands, interest rate cuts are on ice, and the possibility of a raise is not off the table.”