The Bank of England (BoE) paused its series of interest rate hikes on Thursday, September 21, 2023, keeping the benchmark rate at 5.25 percent. This is the first time the BoE has paused rates after 14 consecutive hikes.
The decision comes as inflation in the UK has shown signs of cooling in recent months. The headline inflation rate fell to 6.2 percent in August, down from 6.7 percent in July. However, inflation is still significantly higher than the BoE’s target of 2 percent.
The Bank of England said that it is pausing rate hikes to assess the impact of its previous hikes on the economy. The central bank also said that it is monitoring the war in Ukraine and its impact on the global economy.
Bank of England Pauses Interest Rates at 5.25 Percent
The Bank of England‘s decision to pause rate hikes is a welcome relief for homeowners and businesses, who have been facing higher borrowing costs in recent months. However, it is important to note that the BoE has not ruled out further rate hikes in the future. Inflation is still high, and the central bank is committed to bringing it back down to target.
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