Bank of England likely to maintain interest rates as inflation rises

The Bank of England is expected to keep interest rates steady at 4.75% during its upcoming meeting on December 19. This decision follows a rise in inflation to 2.3% in October, the highest increase in two years. Inflation has surged due to higher energy costs, dampening hopes for further rate cuts this year. The Bank's governor noted that the impact of recent tax increases on businesses remains uncertain. Additionally, the UK’s GDP fell slightly in October, which could influence the Monetary Policy Committee's decisions. However, analysts believe the committee will maintain its cautious approach to interest rates.