UK interest rates set to be held at 4.5% by Bank of England

The Bank of England is expected to keep interest rates unchanged today at 4.5 per cent.

The central bank’s monetary policy committee (MPC), the nine-member panel that sets interest rates every six weeks, is predicted to vote 7-2 in favour of leaving borrowing costs on hold. The MPC will announce their decision at midday.

Since last summer, the MPC has lowered interest rates three times from a 16-year high of 5.25 per cent. The Bank of England increases borrowing costs to tame inflation, which climbed to a peak of 11.1 per cent in October 2022 and currently stands at 3 per cent.

The Bank of England is tasked with keeping inflation stable at 2 per cent over the medium term.

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