Interest rates have been held at 4.25% in a widely expected decision by the Bank of England.
The move comes as inflation remains at its highest level for more than a year and above the Bank’s target rate.
There are concerns that the conflict between Israel and Iran, a major oil producer, could send energy costs higher and drive overall prices up.
UK growth has been uneven, after the economy expanded strongly at the start of the year but shrank sharply in April.