The Bank of England has decided to hold interest rates at 5.25%. This is the first time since November 2021 that we’re seeing UK borrowing costs remain unchanged.
Economists had been split on whether there would be another increase due to the better than expected inflation figures announced yesterday.
“The Bank of England’s decision to hold interest rates at 5.25% marks the first time since November 2021 that UK borrowing costs have remained unchanged,” reflects Sunny Budhdeo, Director of Unique Property Finance. “Economists had been divided over a potential increase, especially given the better-than-expected inflation figures announced yesterday.
Going forward? While the Bank has hinted at keeping rates elevated for an extended period, I believe the markets will likely respond favorably, potentially driving down borrowing costs even further.”