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