London, March 19 (QNA) - Bank of England on Thursday held a steady interest rate at 3.75% following a unanimous vote by the Monetary Policy Committee to maintain borrowing costs amid inflation risks arising from the conflict in the Middle East.

In a statement, the Bank said it would hold rates at 3.75% while monitoring ongoing developments, emphasizing that its core mandate remains to bring inflation back to its 2% target.

The Monetary Policy Committee noted that bank analysts project inflation could rise to 3.5% over the next two quarters. The committee also highlighted its awareness of the risks of entrenched high inflation expectations, while balancing concerns over an economic slowdown that could ease inflationary pressures—currently considered the greater risk. (QNA)