Bank of England holds rates steady amid energy uncertainty.

Bank of England holds rates steady amid energy uncertainty. The Monetary Policy Committee is expected to maintain borrowing costs at 3.75% this week while stress-testing scenarios for prolonged energy price shocks tied to Middle Eastern conflict. Officials believe market futures may underestimate energy price pressures given regional infrastructure damage. The central challenge involves balancing growth concerns against inflation risks, particularly the threat of wage-price spirals if workers demand higher compensation. Recent economic data suggests activity has rebounded this month, limiting immediate pressure for rate changes. Money markets price in two quarter-point increases this year, though economists expect the BOE to maintain current policy unchanged.