Source: New York Times
“As the war in the Middle East continues to push up energy prices and foster heightened fears about inflation, the Bank of England held interest rates steady on Thursday. The decision to not raise rates this month makes it an outlier among other large global central banks. Policymakers at the central bank held rates at 3.75 percent, where they have been since late last year. The decision was announced a day after data showed inflation in Britain had risen to 3.1 percent in August, the fastest pace of price growth since March, driven by higher gasoline and diesel prices. It also follows the decision by the U.S. Federal Reserve to raise interest rates on Wednesday, its first increase in more than three years. But officials at the Bank of England said the protracted conflict in the Middle East was increasing the probability that they would need to raise interest rates soon.” (09/17/260