Bank of England holds interest rates at 4% as inflation remains 'sticky'

Seven MPC members voted to leave interest rates untouched

Linus Uhlig
clock • 2 min read

The Bank of England’s (BoE) Monetary Policy Committee (MPC) has voted to leave its base rate unchanged at 4%, a move widely anticipated by analysts and markets.

In a meeting today, seven MPC members voted to leave interest rates at 4%, having decided to cut rates by 25bps at the last meeting in August, while the remaining two - Swati Dhingra and Alan Taylor - opted for another 25bps cut.  The UK central bank has already made three 25bps reductions to the bank rate so far this year, one in February, one in May, and the most recent in August.  However, figures from the Office for National Statistics on Wednesday (17 September) revealed that sticky inflation has remained elevated at 3.8%, well above the BoE's 2% target, dampening any hopes of a ...

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