Interest rates unchanged at 5.25%

The Bank of England’s Monetary Policy Committee (MPC) has voted to keep the base rate unchanged for at least another month.

Six members voted to maintain the rate at 5.25%, while three members favoured an increase of 0.25 percentage points, to 5.5%.

It’s the second successive meeting at which the rate was kept on hold, after the central bank previously raised rates 14 times in a row in a bid to tackle high inflation.

The latest decision was widely anticipated by economists due signs that upwards price pressure in the economy has eased.

However, interest rates remain at a 15-year peak and are likely to remain high for some time.

The MPC said its current projections “indicate that monetary policy is likely to need to be restrictive for an extended period of time” in order to bring inflation back to the target of 2%.

Commenting after this month’s decision was announced, Bank of England Governor Andrew Bailey said: “We’ve held rates unchanged this month, but we’ll be watching closely to see if further rate increases are needed. It’s much too early to be thinking about rate cuts.”