LONDON: The Bank of England on Thursday kept its key interest rate at a record low 0.1 percent, but signalled a probable hike in the coming months to dampen soaring inflation.
Following a regular meeting, the BoE added in a statement that it was maintaining its vast cash stimulus programme supporting the UK economic recovery from pandemic fallout.
The BoE said in minutes from its latest gathering that it would "likely be necessary" to have "some modest tightening of monetary policy" to bring down inflation.
Policymakers "judged that ... it would be necessary over coming months to increase" its main rate to return UK annual inflation to the BoE's 2.0-percent target.
UK inflation dips but rate rise still forecast
The bank's new chief economist Huw Pill has predicted that the UK annual inflation rate risks shooting above 5.0 percent in the coming months from 3.1 percent currently.
For its part, the British government is forecasting an annual average rate of 4.0 percent over the next year after energy costs soared and reopening economies suffer from supply shortages.
Market expectations had been for a November rate hike to tackle runaway prices which are plaguing economies worldwide.
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