The Bank of England on Thursday maintained its key rate at 3.75% as it noted that there is "little evidence" of material second-round effects thus far in price and wage-setting amid the continued war in the Middle East.
The decision is in line with the consensus forecast for the month.
The BoE's Monetary Policy Committee voted 6-3 in favor of a hold, with three members voting to increase the bank rate by 25 basis points to 4%. The MPC said risks to the inflation outlook were more tilted to the upside, compared with that during the previous meeting. It will also continue to closely monitor the relevant indicators of potential second-round effects.
Based on the latest government data, the UK's annual inflation rate rose to 3.1% in August from the previous month's 2.9%, with the core rate stable at 2.6%. The BoE's medium-term inflation target stands at 2%.