Bank of England to keep rate at 3.75% despite inflation
The Bank of England is expected to keep its main interest rate at 3.75% for a sixth consecutive meeting, even though UK inflation just ticked up again.
Prices rose 3.1% in August, higher than the central bank's 2% target, with higher petrol prices and airfares among the key factors, and higher fuel and energy costs linked to the Iran conflict intensifying price pressures.
BoE monitors prices and wages
The BoE says it's keeping an eye on whether these price jumps start showing up in everyday costs and wages at home.
With the UK economy still pretty sluggish and wage growth slow, it's trying to avoid short-term spikes turning into long-term problems, while markets are pricing in the possibility of another interest-rate increase at one of the Bank of England's next two meetings.