- The Bank of England's Monetary Policy Committee has voted 6-3 to keep interest rates on hold at 3.75 per cent for the sixth consecutive meeting, marking its final rate decision ahead of next month's Budget.
- The central bank maintained the base rate despite mounting pressure to introduce a hike following an uptick in inflation to 3.1 per cent, which has been largely driven by surging energy costs linked to the war in Iran.
- The decision reflects a complex domestic economic picture, as the Bank navigates a slightly growing economy alongside 5 per cent unemployment, falling job vacancies and slowing wage growth.
- Most analysts and financial markets now predict an interest rate rise in November, with reports suggesting the base rate could reach at least 4 per cent before the end of the year as cost-of-living pressures intensify.
- Major lenders have already begun increasing mortgage rates following a spike in bond markets, prompting personal finance experts to advise homeowners to secure new mortgage deals as early as possible.
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