Bank of England holds rates at 4.25% amid Middle East uncertainty
Decision follows data showing UK inflation remains stubbornly above target
Decision follows data showing UK inflation remains stubbornly above target

Bank signals possible cut as soon as next month

Bank of England is seeking evidence that recent price rises are under control

Assessment from MPC adds to sell-off in gilts and prompts traders to increase bets on higher borrowing costs

Vote expected to pass by narrow majority and to hang heavily on the views of governor Andrew Bailey

Monetary Policy Committee says borrowing costs may need to rise if energy shock continues to hit global economy

Policymakers indicate they may need to raise borrowing costs if energy price surge triggers persistent inflation