Bank of England holds interest rates at 3.75% but warns war could force future rises

Central bank announces surprise plan to sell billions of pounds in government bonds back to the Treasury Burnham has to sell Bank rate rises as ‘breathing space’ – good luck with that Business live – latest updates The Bank of England has kept interest rates on hold as it warned a continuation of the bitter fighting in the Middle East could force it to raise borrowing costs amid mounting fears over inflation. It also announced a surprise plan to sell billions of pounds in UK government bonds back to the Treasury to avoid fuelling turbulence in the gilt market, a decision that could have significant consequences for the public finances before next month’s budget. Continue reading...