Bank of England expected to hold rates at 3.75% despite 3.1% inflation

The Bank of England was expected to hold interest rates at 3.75% on 17 September, despite UK inflation rising to 3.1% in August. The Bank, which targets 2% inflation, warned in July that a worst-case Middle East escalation could lift inflation to 4.5% by mid-2027. Markets saw only a one-in-five chance of a rise.