Bank of England warns energy crisis will push inflation above 4% this winter

Interest rates kept at 0.1% as worker and material shortages slow Britain's economic recovery from pandemic

The Bank of England has warned surging household energy bills will drive inflation above 4% this winter, with persistent pressure on living costs expected to last through to the middle of next year despite a slowdown in the economy.

Voting unanimously to keep interest rates at the historic low of 0.1%, the Bank's monetary policy committee (MPC) warned severe shortages of workers and raw materials were weighing on Britain's economic recovery from lockdown.