UK interest rates held at 5.25%

The Bank of England has kept interest rates on hold for the sixth time in a row, but signalled that cuts are on the way.

The nine-member Monetary Policy Committee voted 7-2 to maintain the base rate at 5.25%, with two members of the committee voting for lower borrowing costs.

Rates are currently at the highest level for 16 years in a bid to bring down high inflation. Although inflation has been falling, it remains above the Bank’s target of 2%.

Commenting after the latest decision was announced, Andrew Bailey, governor of the Bank of England, said he was “optimistic that things are moving in the right direction”.

The Bank expects inflation to fall “close” to its 2% target in the next couple of months.

“We need to see more evidence that inflation will stay low before we can cut interest rates,” Bailey added.

Most economists expect the first interest rate cut to be announced in the coming months.

The next decision is due on 20 June.

No change in interest rates at 5.25%

The Bank of England has held interest rates at 5.25% for the third time in a row.

At its latest meeting, the Monetary Policy Committee voted by 6-3 to maintain the current base rate and indicated that borrowing costs will remain at that level for some time.

The decision was widely expected by financial markets after inflation fell faster than expected.

Bank governor Andrew Bailey said: “We’ve come a long way this year, and successive rate increases have helped bring inflation down from over 10% in January to 4.6% in October.

“But there is still some way to go. We’ll continue to watch the data closely, and take the decisions necessary to get inflation all the way back to 2%.”

Six members of the Monetary Policy Committee voted for no change, while the other three wanted an increase to 5.5%.

Investors anticipate that the next rate change will be a cut in spring 2024.

The UK economy is expected to show little to no growth for the next couple of years.

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.”