The Bank of England kept its key interest rate on hold for the fifth time this year after a bigger-than-expected drop in the inflation rate last month gave policymakers breathing space to assess the fallout from renewed fighting in Iran.

A number of economists have predicted another seven-to-two vote in favour of holding the current rate.

The Bank of England kept its key interest rate on hold for the fifth time this year after a bigger-than-expected drop in the inflation rate last month gave policymakers breathing…