The Bank of England decided to keep interest rates unchanged at 5.25% at its policy meeting on Thursday, keeping them at a 15-year high. The Monetary Policy Committee voted by a majority of 6-3 in favor of keeping rates unchanged, marking the second time since September that rates have remained unchanged.
While inflation has continued to fall, BoE Governor Andrew Bailey explained that a further drop needs to be achieved in order to bring inflation down to the central bank’s 2% target. “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,” Bailey revealed.
Since reaching double-digit figures, UK inflation has gradually eased to 6.7% in the year September, unchanged from the previous month. Still, this rate is higher than the rest of the G7 economies, pushing the UK to ramp up its fight against stubborn inflation.