The majority of members felt that holding rates at 3.75% was sufficient protection against the risk that increased global energy prices will drive inflation higher later this year. This indicates that interest rates could be raised in response to further re-escalation of the US-Israel’s conflict with Iran. The central bank said UK inflation had been falling but was expected to rise again later this year as higher energy prices feed through into the economy. Higher oil prices linked to the Middle East conflict are expected to be the main driver of inflation, pushing energy prices higher for households and businesses in the coming months. “Policy could stay unchanged for the rest of the year, with rate-setters relying on tough talk rather than higher rates to contain inflation.