Bank of England holds rates at 5.25% as it gives inflation warning

The Bank said rates would need to remain at high levels for “sufficiently long” to return inflation back to its 2% target. Photograph: Henry Nicholls/AFP/Getty

The Bank of England has said Britain is facing a tougher job to crush persistently high inflation than other advanced nations, as it kept interest rates on hold at the highest level since the 2008 financial crisis.

Pushing back against expectations in financial markets for a deep round of interest rate cuts next year, the central bank said there was still a long way to go before it could declare victory on inflation, despite a worsening outlook for the UK’s stagnant economy.