UK's central bank set to keep interest rates on hold amid Middle East uncertainties - The Bank of England is set to keep interest rates on hold as fears grow that the conflict between Israel and Iran will escalate to involve the United States and send oil prices soaring and push U.

Sterling slipped versus a stronger dollar on Thursday ahead of the Bank of England's policy decision, with no change to rates the widely expected outcome, while investor sentiment remained fragile given the flaring conflict in the Middle East.

The Bank of England is widely expected to keep interest rates on hold later today amid global uncertainty and surging food and oil prices. Most economists think the majority of the members of the Monetary Policy Committee (MPC), which sets borrowing costs, will vote to keep the Bank Rate at 4.25pc.