Interest rates remain stable as Bank of England keeps a close watch on inflation

Interest rates have remained at 5.25% after the Bank of England’s Monetary Policy Committee voted by 6-3 in favour of maintaining the status quo.

Three members of the committee preferred to increase the rate by 0.25 percentage points, to 5.5%.

The decision is the third consecutive time that the Bank of England has held off raising the interest rate – a sign that inflation, currently standing at 4.6%, is easing.

Governor of The Bank of England, Andrew Bailey, said: “Today we’ve decided to hold interest rates at 5.25%. We’ve come a long way this year, and successive rate increases have helped bring inflation down from over 10% in January to 4.6% in October.

“But there is still some way to go. We’ll continue to watch the data closely, and take the decisions necessary to get inflation all the way back to 2 per cent.”