The Bank of England has left its interest rates on hold at 4.25% during its Thursday meeting, though the bank has indicated that cuts were coming later in this year.

Britain's central bank looks set to keep interest rates on hold on Thursday as it waits to see if the economy and inflation continue to weaken, or whether the country will be hit by an energy price shock from the Israel-Iran conflict.

Governor Andrew Bailey says "interest rates remain on a gradual downward path" but cautions "the world is highly unpredictable".