Bank of England announces latest interest rates decision
manchestereveningnews.co.ukThe Bank of England has announced that interest rates will be held at 5 per cent. Rate-setters on the Monetary Policy Committee (MPC) decided not to cut the base rate, which affects interest rates on borrowing and saving, at their meeting on Thursday morning.
Eight of the nine policymakers voted to keep interest rates unchanged. One member, Swati Dhingra, voted to reduce the base rate by 0.25 percentage points, to 4.75 per cent. READ MORE: Bank of England has sent 'clear message' over interest rates, economist warns The central bank cut interest rates from 5.25 per cent to 5 per cent in August - the first rate cut since 2020 - but economists had predicted that back to back rate cuts would be unlikely while interest rates remain above the 2 per cent target.
Consumer Prices Index (CPI) inflation hit 2 per cent in May and June this year, before edging up to 2.2 per cent in July and August, according to official figures.
Bank governor Andrew Bailey had previously said that policymakers “need to be careful not to cut interest rates too quickly or by too much”.
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