Receive free UK interest rates updates
We’ll send you a myFT Daily Digest email rounding up the latest UK interest rates news every morning.
The Bank of England has held interest rates at 5.25 per cent after a knife-edge vote that is likely to signal the peak of borrowing costs in this cycle.
Following better than expected inflation data in August, the bank’s Monetary Policy Committee split five to four in favour of leaving rates unchanged, with Andrew Bailey, BoE governor, casting the final and decisive vote.
The decision was the first pause after 14 consecutive rate rises since the tightening cycle started in December 2021.
The Committee indicated that it now wanted to leave interest rates at 5.25 per cent for some time to ensure that it still brought inflation back down to the BoE’s 2 per cent target.
Inflation stood at 6.7 per cent in August and there were no suggestions of a cut in interest rates in the near term.
This is a developing story
Read the full article here