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

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.

The Bank of England is set to keep interest rates on hold Thursday 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.