Bank of England holds rates at 3.75% but says ‘ready to act’ if needed
Monetary Policy Committee says borrowing costs may need to rise if energy shock continues to hit global economy
Monetary Policy Committee says borrowing costs may need to rise if energy shock continues to hit global economy

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

Bank signals possible cut as soon as next month

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

Decision follows data showing UK inflation remains stubbornly above target

A policy projection would improve monetary policy transparency and reduce guesswork for businesses and investors