The Bank of England has maintained interest rates at 4% following a close vote by the Monetary Policy Committee (MPC). Members indicated a potential gradual easing of rates in the future, suggesting inflation had likely peaked at 3.8% in September. The Bank expects inflation to decrease and reach the 2% target by 2027. Unemployment projections have also worsened, with rates expected to peak at 5.1% in 2026. Andrew Bailey, governor of the Bank, said: “We still think rates are on a gradual path downwards but we need to be sure that inflation is on track to return to our 2% target before we cut them again.”
Bank of England keeps rates on hold at 4%
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