UK ‘not out of woods’ on inflation as interest rates held
- The Bank of England has maintained interest rates at 4%, citing ongoing concerns about inflation in the UK.
- The Monetary Policy Committee voted to keep rates unchanged, following a 0.25 percentage point cut in August.
- Governor Andrew Bailey stated that while inflation is expected to return to the 2% target, future rate cuts will be gradual and cautious.
- Consumer Prices Index (CPI) inflation remained at 3.8% in August, staying above the Bank's 2% target rate.
- Rising food and drink inflation, which reached 5.1%, is attributed to higher commodity prices, labour costs, and new packaging regulations.