Bank Of England Keeps Interest Rates Unchanged

In an effort to maintain stability in the face of persistent economic uncertainty, the Bank of England kept interest rates at 4% on Thursday. Over the course of the upcoming year, the central bank also intends to reduce the pace of its quantitative tightening program in order to prevent upsetting the already erratic bond markets, which affect the price of borrowing by the government. The nine-member Monetary Policy Committee (MPC) voted 7-2 to maintain rates at their current level following five rate cuts since summer 2024, including one last month. The action was largely anticipated; analysts had forecast a pause in the face of high inflation, which in August reached 3.8%, over above the Bank’s 2% target. In an unpredictable economic climate, the Bank seeks stability by maintaining stable interest rates and limiting bond-market actions.