The Bank of England has left interest rates unchanged at 5.25 per cent after fourteen months of consecutive rises
The move follows yesterday’s unexpected fall in inflation Official statistics published yesterday showed Consumer Price Index (CPI) inflation unexpectedly fell slightly in the year to August 2023, rising by 6.7 per cent down from 6.8 per cent in July.
The Bank’s Monetary policy committee voted by 5-4 to maintain the current rate
The Bank’s governor, Andrew Bailey, who voted for a hold, said:
“Inflation has fallen a lot in recent months, and we think it will continue to do so. That’s welcome news. But there is no room for complacency. We need to be sure inflation returns to normal and we will continue to take the decisions necessary to do just that.”
Chancellor Jeremy Hunt said in a statement
“We are starting to see the tide turn against high inflation, but we will continue to do what we can to help households struggling with mortgage payments,”
Commenting on the news The National Economic Foundation say
“Millions of people will be breathing a sign of relief at the news interest rates have stayed the same. This was the right decision for struggling families and businesses – now they need this government to step up its response to the cost of living crisis.”
