emirates7 - The Bank of England is expected to hold interest rates at 3.75 percent as policymakers face a "balancing act" of controlling inflation and supporting economic growth.

Most economists think the Bank's Monetary Policy Committee (MPC) will opt to leave rates unchanged at its next decision on Thursday.

The MPC delivered a cut to borrowing costs before Christmas, from 4 percent to 3.75 percent, marking the fourth reduction of the year.

Governor Andrew Bailey said at the time that the UK had "passed the recent peak in inflation and it has continued to fall," but he cautioned that further cuts will be a "closer call."

Since that decision, official data has shown that inflation bounced back in December, rising for the first time in five months.

The rate of Consumer Prices Index (CPI) inflation came in at 3.4 percent for the month, up from 3.2 percent in November, with tobacco duties and airfares among the factors driving prices higher.