BoE Keeps Key Rate Unchanged At 4.25%

(RTTNews) - The Bank of England maintained its interest rate on Thursday after cutting it by a quarter-point last month.

The Monetary Policy Committee voted 6-3 to hold the Bank Rate at 4.25 percent. Three members preferred to reduce the rate by 25 basis points.

The BoE has reduced the rate four times since last August.

A majority of members said disinflationary progress had continued, but there was not a strong case for a further easing of monetary policy at this meeting.

Inflation is likely to stay around 3.5 percent over the second half of 2025 before falling back towards the 2 percent target from next year.

"Given the outlook, and continued disinflation, a gradual and careful approach to the further withdrawal of monetary policy restraint remains appropriate," the bank said.

"Monetary policy would need to continue to remain restrictive for sufficiently long until the risks to inflation returning sustainably to the 2% target in the medium term had dissipated further," the bank added.