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 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.