London, December 19, 2024: The Bank of England has decided to maintain the United Kingdom’s main interest rate at 4.75%, following a recent spike in inflation. The decision, announced after the latest Monetary Policy Committee (MPC) meeting, comes amidst growing concerns about rising living costs and their impact on the broader economy.
Despite the inflation rate exceeding the central bank’s 2% target in recent months, policymakers opted for a pause, citing the need to assess the cumulative effects of previous rate hikes on households and businesses. The Bank of England Governor stated that while inflationary pressures remain elevated, there are signs of moderation in some sectors, which could guide future decisions.
The move to hold the rate steady is seen as a balancing act to control inflation without overburdening consumers and businesses with higher borrowing costs. Financial analysts predict that the central bank will closely monitor inflation trends and economic growth in the coming months before making further adjustments to its monetary policy.
