The Bank of England’s Monetary Policy Committee have voted by a majority of 5-4 to keep interest rates at 4%.
The Bank said that although Inflation has come down a long way from its peak three years ago, it remains too high.
“In our decision to hold interest rates today, we have balanced the risk that above-target inflation becomes more persistent against the risk that demand in the economy is weakening, which might cause inflation to fall too low.”
The bank added that if inflation stays on track, it expects to be able to gradually cut rates further.
Today’s decision breaks a cycle of cutting rates by 0.25 per cent at every other meeting since August 2024
The mortgage industry reacted to the news saying that the decision offers some stability for mortgage holders and those planning to move home.
“While borrowing costs remain high compared to recent years, the pause could bring more predictable mortgage rates and a steadier housing market.”
