Bank of England holds interest rates but warns of rises to come

Bank of England holds interest rates but warns of rises to comeThe Bank of England has held interest rates. The Monetary Policy Committee (MPC) held interest rates in a split 6-3 decision on Thursday, with the economist Catherine Mann joining fellow external member Megan Greene and the Bank’s chief economist Huw Pill in voting for a 25 basis point hike. Minutes from the MPC’s latest meeting on setting interest rates said those voting for interest rates to be held believed “policy strategy could change” if inflation rose above expectations due to a re-escalation in conflict across the Middle East. Officials said the MPC would likely opt to hike interest rates under such a scenario. But higher yields for UK government bonds, representing a rise in market interest rates and pushing up borrowing costs, had also slowed price growth in the UK.