"War in the Middle East has pushed up energy prices. You can already see that at the petrol pump and, if it lasts, it will feed into higher household energy bills later in the year. Whatever happens, our job is to make sure inflation gets back to its 2% target."
"The Bank of England 'stands ready to act' to keep interest rates at a level to control inflation. All members of the rate-setting committee voted to hold rates and 'assess how events unfold'. They also discussed whether a rate rise could be needed, although Bailey suggested markets were 'getting ahead' of themselves in assuming several rises this year."
The Bank of England maintained its key interest rate at 3.75% in a unanimous decision, reversing earlier expectations of a rate cut. Middle East conflict has increased energy prices, pushing inflation expectations to 3.5% by March, up from the January level of 3%. Governor Andrew Bailey stated the Bank stands ready to act to keep inflation under control and return it to the 2% target. The rate-setting committee discussed whether rate rises might be needed, though Bailey cautioned markets against assuming multiple increases this year. The unanimous vote marked the first such agreement in four-and-a-half years, representing a significant shift from February's split decision.
Read at www.bbc.com
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