The Bank of England has held interest rates at 4% in a widely expected move. The decision comes as inflation remains at almost double the Bank’s target, and ahead of the Budget later this month, in which speculation has grown over tax rises.
The chancellor of the Exchequer, Rachel Reeves, has said measures in her Budget will focus on “getting inflation falling and creating the conditions for interest rate cuts”.The Bank’s base rate has an impact on the cost of borrowing for individuals and businesses, and also on returns on savings
Inflation unexpectedly held steady in September and recent jobs data has also hinted at weakening price pressures. The MPC said it believed inflation had peaked and would fall in data for October and November as weaker economic growth and a worsening jobs market took their toll on demand.