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The Bank of England has warned that interest rates are likely to rise if the Middle East war continues, as the central bank's governor stated inflation is on course to hit 4pc.
Andrew Bailey delivered the warning while the Monetary Policy Committee voted six to three to hold Bank Rate at 3.75pc on Thursday, marking the sixth consecutive meeting without a change.
The decision leaves the Bank out of step with the US Federal Reserve and the European Central Bank, both of which raised borrowing costs this month.
Bailey attributed the upward pressure on prices to a material increase in energy costs since July, noting that oil prices have returned above $100 a barrel.
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