Bank of England warns of inflation risks as it holds rates at 3.75%
Assessment from MPC adds to sell-off in gilts and prompts traders to increase bets on higher borrowing costs
Assessment from MPC adds to sell-off in gilts and prompts traders to increase bets on higher borrowing costs

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

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

Yields on 30-year gilts hit 28-year high on expectations BoE will raise rates two or three times to counter inflation threat

Decision follows data showing UK inflation remains stubbornly above target

Figure prompts traders to increase bets on Bank of England interest rate cut this year and sparks gilt rally

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