LONDON (AP) — The Bank of England held official interest rates steady at 5.25 percent yesterday.The decision by the bank’s Monetary Policy Committee to keep interest rates on hold followed a surprise quarter of a percentage point rise last month and markets had been poised for the possibility of another hike.

Economists said that another increase remains likely in the coming months, despite yesterday’s decision.

The central bank has recently expressed its concern about the need to control inflation, which rose to an annual rate of 3 percent in December. That was the highest rate since 1997 and is well above the bank’s long-term target of 2 percent.

A rise above 3 percent will trigger the requirement for Bank of England Governor Mervyn King to write a formal letter to Treasury chief Gordon Brown explaining why inflation is so high.

Analysts said the diminishing year-on-year impact of higher utility bills should help slow inflation in the coming months, but wage growth remains a worry.