Yesterday’s consumer prices index (CPI) figure for May was lower than expected and unchanged from April at 2.8%, giving the Bank’s rate-setting committee leeway to hold base rate for the fourth consecutive meeting.

Although inflation remains above its 2% target, it is not as high as forecast given the impact of war in the Middle East on oil prices.

At the last meeting, Monetary Policy Committee (MPC) members voted 8-1 in favour of freezing the base rate.

However, the minutes of the meeting hinted that the committee might look to raise rates this year in a bid to curb inflation triggered by the “significant energy price shock” from the war.

Prior to the strikes on Iran in late February, the Bank of England was expected to cut rates by at least 25 basis points around this time in the year.