The Bank of England kept its main interest rate on hold at 3.75 per cent on Thursday and hinted of hikes to come as policymakers assess the economic impact of the Iran war and Tehran's effective closure of the Strait of Hormuz, through which a fifth of the world's crude passes. Other central banks have also held rates this week, including the US Federal Reserve, the Bank of Japan and the European Central Bank, with all opting for no change as they gauge how long the volatility related to the conflict in the Middle East will persist and what the ensuing impact on inflation will be.

Minutes from the Bank of England meeting showed that eight of the nine rate-setters voted to keep rates on hold, while one member opted for a quarter-point hike. But there was a clear signal that interest rates could rise in the coming months.

"We think this is a reasonable place, given the situation of the economy and the unpredictability of events in the Middle East," said Bank Governor Andrew Bailey. "Whatever happens, our job is to make sure that inflation gets back to the 2 per cent target after the initial impact of the war on energy prices has passed."