Decision comes as concerns mount over economic fallout from conflict bringing fresh cost of living shock
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The Bank of England has kept interest rates on hold amid growing fears over an inflation shock triggered by the US-Israel war on Iran.
As households brace for a rise in living costs, the Bank’s rate-setting monetary policy committee (MPC) voted by a majority to keep its key base rate at the current level of 3.75%.
Financial markets had been pricing in an almost 100% chance of the Bank keeping borrowing costs on hold, and traders are now betting that it could raise rates as soon as July.
