Interest rates LIVE: Bank of England set to make major announcement at 12pm | Personal Finance | Finance

Most economists are expecting the Bank’s nine-member Monetary Policy Committee (MPC) to keep rates at 3.75%.

Last week, a raft of economic data showed the conflict has helped drive inflation higher.

Data published by the Office for National Statistics (ONS) showed UK Consumer Prices Index (CPI) inflation lifted to 3.3% in March, a three-month high, on the back of accelerating fuel prices.

The price of motor fuels jumped by 8.7% month-on-month – the largest increase since June 2022 – as disruption to oil production and transportation drove diesel and petrol prices higher.

Meanwhile, Bank of England research saw UK firms warn they think food inflation could jump as high as 7% as they increased their inflation outlook for next year.

Sandra Horsfield, economist for Investec, said: “We expect the MPC to keep the Bank rate on hold at 3.75% this time, as it did at the March meeting.

“Whereas military strikes were still under way during the MPC’s last policy discussion, the upcoming meeting looks to be held while the US’s indefinite ceasefire is in place.

“However, the repercussions of the conflict are still keenly felt, and uncertainty about how the situation could evolve also remains high, which will be key points the MPC will have to consider.”