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Bank of England holds rate as inflation stays high

World News

18-09-2025 | 07:45

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Bank of England holds rate as inflation stays high

The Bank of England kept its key interest rate at four percent on Thursday, as elevated UK inflation offsets the country's stagnant economic growth.

The decision widely expected by markets followed a regular policy meeting and came one day after the U.S. Federal Reserve cut its benchmark borrowing costs for the first time in 2025.

"Although we expect inflation to return to our two-percent target, we're not out of the woods yet, so any future cuts will need to be made gradually and carefully," Bank of England governor Andrew Bailey said in a statement.

AFP

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