{"id":127179,"title":"Bank of England Holds Rates at 4% as Inflation Pressures Persist","publisher":"Share Talk","author":"sharetalk","published":"2025-09-18T11:11:53+00:00","modified":"2025-09-18T11:11:53+00:00","canonical_url":"https://www.share-talk.com/bank-of-england-holds-rates-at-4-as-inflation-pressures-persist/","markdown_url":"https://www.share-talk.com/bank-of-england-holds-rates-at-4-as-inflation-pressures-persist.md","json_url":"https://www.share-talk.com/bank-of-england-holds-rates-at-4-as-inflation-pressures-persist.json","category":"Technology","categories":["Technology","Technology, Media & Telecoms"],"tags":["Bank of England","BoE","central bank digital currency","Conservative","Digital Currency","digital pound","Harriett Baldwin","HM Treasury","Select Committee"],"featured_image":"https://i0.wp.com/www.share-talk.com/wp-content/uploads/2023/11/Bank-of-England-20_11_23.jpg?fit=1200%2C800&quality=89&ssl=1","format":"news","language":"en-GB","content":"The Bank of England has voted to **leave interest rates unchanged at 4%**, as policymakers balance persistent inflation risks against signs of slowing growth.\n\nThe **Monetary Policy Committee (MPC)** decision came a day after official figures showed **UK inflation rose to 3.8% in August**. According to the **Office for National Statistics (ONS)**, **food inflation climbed for a fifth consecutive month to 5.1%**, with economists at Pantheon Macroeconomics forecasting a peak of **5.8% in December**.\n\nAdding to concerns, separate data this week revealed that **wage growth remained elevated at 4.8% in July**, fuelling fears of second-round inflationary effects.\n\nThe BoE’s decision followed swiftly on the heels of the **US Federal Reserve’s rate cut on Wednesday**, its first since President Donald Trump’s return to office in January, amid reports of sustained political pressure.\n\n**Bailey: Rate Cuts Must Be ‘Gradual and Careful’**\n\nBank of England Governor **Andrew Bailey** has warned that interest rate reductions must be taken “gradually and carefully,” after the Monetary Policy Committee (MPC) voted to **hold borrowing costs at 4%**.\n\nThe MPC voted **7–2** in favour of no change, with **Swati Dhingra and Alan Taylor** backing a **25 basis point cut**.\n\n**Bailey said**: “We held interest rates at 4pc today. Although we expect inflation to return to our 2pc target, we’re not out of the woods yet so any future cuts will need to be made gradually and carefully.”"}