Rate-setters at the Bank voted to maintain the UK base interest rate at 3.75%The Bank of England has held interest rates for the fifth successive time despite cautioning that energy prices and an AI-driven memory chip shortage will drive inflation higher. A majority of the central bank’s nine-strong Monetary Policy Committee (MPC) voted in favour of keeping interest rates at 3.75%. The Bank predicted that UK inflation will average around 3% this year, before slowing to 2.7% in 2027 and 1.8% in 2028. In last month’s MPC meeting, the Bank had suggested inflation would peak at “slightly above 3.25%”. 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.