Policymakers held interest rates at 4.5 percent on Thursday as they warned of rising economic uncertainty. Households are also bracing for higher utility costs starting next month.

The Bank of England kept its main U.K. interest rate unchanged at 4.50% on Thursday even though the economy is barely growing and the nation faces more uncertainty in light of the tariff policies being enacted by the Trump administration in the U.

Cutting interest rates can boost consumer spending by making borrowing cheaper - but the Bank is wary of stoking inflation.