NEWS STORY : Interest Rates Held at 5.25% by Bank of England
STORY
The Bank of England has left interest rates at 5.25%, but indicated that there will likely be future cuts as the rate of inflation has started to fall. The Bank has a target UK inflation rate of 2% and the latest figures show a fall to 3.4%, significantly lower than over previous months. It’s the first time since September 2021 that none of the members of the MPC, the committee that votes on the level of interest rates, voted for an increase, with eight members this month voting to hold rates and one voting to reduce them.
Andrew Bailey, the Governor of the Bank of England, said in a statement:
“In recent weeks we’ve seen further encouraging signs that inflation is coming down. We’ve held rates again at 5.25% because we need to be sure that inflation will fall back to our 2% target and stay there. We’re not yet at the point where we can cut interest rates, but things are moving in the right direction.”
EXTERNAL RESOURCES
