Interest rates expected to be held at 5.25%

The Bank of England (BoE) is today widely expected to hold interest rates at the current level despite inflation falling back to the 2% target for the first time in nearly three years.

The UK’s central bank is expected to freeze interest rates at 5.25% after steadily increasing rates since 2021 in a bid to bring down inflation.

Most economists believe the Bank will wait to see if inflation stays at 2% in the coming months.

The new figure announced yesterday, down from 2.3% in April, marked the first time inflation has been at the BoE’s target since July 2021.