Earlier this year, the Bank of England said that it expects inflation to rise to 3.7% in the third quarter, before starting to cool into next year.

The Bank of England kept its main interest rate at the two-year low of 4.25% on Thursday as fears grow that the conflict between Israel and Iran will escalate.The decision by the bank’s nine-member Monetary Policy Committee was widely anticipated.

The Bank of England held interest rates at 4.25% in a more divided vote than expected as policymakers reacted to signs of softening in the labor market and weak growth against a backdrop of mounting geopolitical tensions.