Ratesetters likely to keep borrowing costs steady in face of posbbile inflation shock from Middle East

Latest official data on prices shows an easing in consumer price inflation from a more than year high of 3.5% in April

Investors will focus on the chairman Jerome Powell to gauge how he plans to combat risk of rising prices, which remain a concern for the US central bank

Ratesetters likely to keep borrowing costs steady in face of posbbile inflation shock from Middle East

The Bank of England is widely expected to keep interest rates on hold later today amid global uncertainty and surging food and oil prices.

Rolling coverage of the latest economic and financial news

The Monetary Policy Committee looks set to keep the base rate at 4.25 per cent when the latest decision is announced at noon.

Base rate stays unchanged as policymakers weigh concerns about inflation, Trump tariffs and Israel-Iran conflict

Earlier this year, the Bank of England said that it expects inflation to rise to 3.7% in the third quarter, before starting to cool into next year.

Most economists had predicted that the Bank of England's Monetary Policy Committee (MPC) would opt to keep interest rates on hold at 4.25 per cent following its latest meeting.

The central bank decides to hold interest rates at 4.25% with inflation remaining above its target level.

The Bank of England has left its interest rates on hold at 4.25% during its Thursday meeting, though the bank has indicated that cuts were coming later in this year.