Interest rates have been kept on hold for the sixth decision in a row, but the Bank of England has signalled that the outlook could change if energy prices remain elevated.
The decision means rates are unchanged again, extending the current pause after five previous consecutive holds. While no rise has been made at this stage, the Bank said high energy prices would make a future increase more likely.
The warning places energy costs at the centre of the Bank’s latest assessment. According to the information released, the Bank has not moved rates immediately, but it has indicated that sustained pressure from energy prices could affect future decisions.
The latest position leaves households, businesses and financial markets facing continued uncertainty over the direction of borrowing costs. The key development is that rates remain steady for now, while the Bank has left open the possibility of a rise if energy prices stay high.
For the moment, the confirmed position is that interest rates have been held for a sixth successive time. The next potential shift will depend, in part, on whether energy prices continue to remain high.
