Economy

Bank of England holds interest rates at 5.25% amid warnings over stubborn inflation

Bank downgraded forecast for UK economic growth

Bank of England: Bank, which uses interest rates as a tool to bring inflation down to its 2 per cent target, said price rises have been slowing more rapidly than previously expected. Picture: Getty

UK interest rates have been held at 5.25 per cent, providing some relief for borrowers, as the Bank of England downgraded its forecast for economic growth and said inflation could stay higher for longer.

Governor Andrew Bailey warned it is “much too early” to think about cutting rates, as the Monetary Policy Committee (MPC) voted by a six-three majority to keep the base rate at 5.25 per cent.

Three members preferred to increase rates to ...