Bank of England opens door to December rate cut as it signals inflation has peaked

The Bank’s MPC voted by a narrow five-four majority to keep borrowing costs unchanged for a second consecutive meeting. Photograph: Dinendra Haria/SOPA Images/Shutterstock

The Bank of England has opened the door to a December interest rate cut after signalling that inflation had peaked, as it kept borrowing costs unchanged before Rachel Reeves’s make-or-break budget.

With less than three weeks before the chancellor’s tax and spending statement, the Bank’s monetary policy committee (MPC) voted by a narrow five-four majority to keep borrowing costs unchanged for a second consecutive meeting.