The Bank of England kept its main interest rate at 3.75% on Thursday. This decision came because of new uncertainty in the world economy, caused by growing conflict in the Middle East. Policymakers warned that inflation in the UK will stay high, mainly because of rising energy prices.

Before this conflict, many people expected the Bank to cut interest rates soon. However, the cost of living has increased quickly, and inflation reached 3.3% in March. The Bank’s committee voted mostly to keep rates the same, instead of lowering or raising them now.

Higher oil prices are leading to more expensive household bills in the coming months. The Bank also said there is a risk that businesses and workers will push prices and wages up even more. The Bank published several possible future scenarios, showing that inflation could stay high, and interest rates may need to rise again if needed.