The Bank of England has left interest rates unchanged at 3.75% but said the UK may need to brace for increases later this year, as “higher inflation is unavoidable” as a result of the war in the Middle East. The Bank’s rate-setting monetary policy committee (MPC) voted to leave borrowing costs on hold, but said that if energy costs stayed persistently high it might have to take a more “forceful” response to keep inflation under control. The nine-member MPC was split 8-1 in its decision to keep borrowing costs on hold for the third consecutive meeting. Andrew Bailey, the governor of the Bank of England, said: “Where we go from here will depend on the size and duration of the shock to energy prices” as the conflict in the Middle East evolves. The Bank outlined a worst-case scenario in which the price of oil rose above $130 a barrel and remained elevated for a prolonged period.…