BoE holds rates at 0.1% but warns of further 'temporary' inflationary pressure

Inflation to rise to 4% by the end of 2021

The Bank of England’s Monetary Policy Committee has voted unanimously to maintain its key interest rate at 0.1%, as the central bank announced that it expects inflation to continue to rise above 2% and not fall back to its target for “around two years”.

Its quarterly Monetary Policy Report, published today (5 August), updated the bank's forecasts to predict the UK inflation rate to continue to rise beyond 4% by the end of 2021, before falling closer to...