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Bank of England holds main UK interest rate at 4% with inflation above target

The Monetary Policy Committee voted 7-2 to maintain the rate amid 3.8% inflation and rising food prices, reflecting concerns over economic uncertainty and wage growth.

  • The Bank of England held the base rate at 4% on Thursday after a previous cut from 4.25% on August 7, according to the Bank of England.
  • Consumer Prices Index inflation remained steady at 3.8% in August, according to figures released by the Office for National Statistics .
  • Rachel Springall, a finance expert at Moneyfactscompare.co.uk, stated that mortgage rates have been volatile, benefiting borrowers looking to secure new deals.
  • Next week, UK Savings Week will encourage families to maximize their savings, with many accounts offering returns of 4% or more, according to Rachel Springall.
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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 Thursday, as elevated UK inflation offsets the country's stagnant economic growth.

·Calhoun, United States
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Manchester Evening News broke the news in Manchester, United Kingdom on Wednesday, September 17, 2025.
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