Base interest rate remains at 5.25%
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(Credit: George Iordanov-Nalbantov)
The Bank of England (BoE) has decided to keep interest rates unchanged at 5.25%, despite a drop in inflation to 3.4% in February – the lowest level since September 2021.
The positive inflation figures, released on Wednesday, came ahead of the BoE’s latest interest rate decision today.
Governor Andrew Bailey acknowledged the “encouraging signs” that inflation is declining but emphasised the need to ensure it falls back to the 2% target and remains there.
“We’re not yet at the point where we can cut interest rates, but things are moving in the right direction,” he stated.
The inflation drop has bolstered Prime Minister Rishi Sunak’s position, with Chancellor Jeremy Hunt hinting at the possibility of pre-election tax cuts and interest rate reductions, the Independent reports.
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