Bank of England makes big interest rate decision ahead of Budget

• The Bank of England has maintained interest rates at 4 per cent for the second consecutive time.
• The Monetary Policy Committee voted by a narrow margin of five to four to keep the rate unchanged.
• This decision was made despite policymakers indicating that inflation has peaked at 3.8 per cent in September; the Bank expects inflation to gradually decrease and reach its 2 per cent target rate by 2027.
• Governor Andrew Bailey stated that while rates are on a gradual downward path, they need assurance that inflation is on track before further cuts.
• Business confidence remains weak, with companies delaying investment plans due to uncertainty, including ahead of the autumn Budget.

IN FULL

Bank of England says inflation has ‘peaked’ as interest rates kept at 4%