Bank of England holds interest rates at 5%

London: The Bank of England (BoE) decided to hold interest rates at 5% in its most recent monetary review. The Bank’s Monetary Policy Committee (MPC) board members’ decision was 8-1, with only one member voting to cut rates to 4.75%

Bank of England’s governor Andrew Bailey justified the unchanged rate by saying it is “vital that inflation stays low” and for that “we need to be careful not to cut [rates] too fast or by too much”.

The decision comes one day after the UK’s latest inflation figures were held steady at 2.2% in the year to August, despite a jump in the cost of flights.

Reacting to the Bank’s decision the Confederation of British Industry says it is a fine balancing act between the “upside risks to inflation” and “not being too tight so as to choke off activity”.

We’re now ending our coverage, but you can read more about today’s BoE decision here. Our colleagues have also prepared a handy explainer, where you can understand when interest rates are likely to drop again.