The Bank of England has maintained its interest rates, echoing a recent move by the US Federal Reserve.
The Monetary Policy Committee announced at midday that the base rate would stay at its 15-year peak of 5.25%, unchanged since August.
Over the past two years, the Bank of England, located on Threadneedle Street, has increased rates 14 times in a bid to combat rising inflation.
Following indications from the Fed of a more relaxed policy approach next year, market expectations are now leaning towards a reduction of one percentage point or more in the Bank’s rate in 2024.
The Treasury has issued a statement following the Bank of England’s choice to maintain the base interest rate at 5.25%:
“Our efforts against inflation are showing results, with a noticeable improvement and an increase in real wages. However, our focus remains on eliminating inflation from the economy to achieve our goal of a 2% inflation rate.
Through tax reductions for diligent individuals and businesses, along with initiatives to facilitate employment, we are on track to provide an unprecedented uplift to the potential GDP.”
