BoE maintains rate at 5.25 percent after FED pause

September 21, 2023

The Bank of England has opted to maintain the interest rate at 5.25% following 14 successive hikes, prompted by a slight unexpected dip in inflation reported on Wednesday. This decision by the Monetary Policy Committee reflects the alleviation of pressure to further raise rates, as UK inflation edged down. The central bank has been striving to curb inflation and align it with the 2% target, resulting in 14 rate increases over the past two years, marking the highest level since February 2008. Concurrently, the US Federal Reserve also announced its decision to keep its benchmark interest rate unchanged on Wednesday.