Surprise as UK interest rates left unchanged
By David Wood | 21st September 2023
UK interest rates have been left unchanged at 5.25% by the Bank of England in a surprise move.
The decision comes a day after figures revealed an unexpected slowdown in UK price rises in August.
The Bank had previously raised rates 14 times in a row to tame inflation, leading to increases in mortgage payments but also higher savings rates.
However, the latest move raises the prospect that this cycle of rate increases may have peaked.
It had been expected that the Bank would raise the base rate from 5.25% to 5.5% - but Wednesday's inflation data changed that.
Inflation was 6.7% in August, a surprise drop from July - despite rising petrol and diesel prices.
Bank of England governor Andrew Bailey said: "Inflation has fallen a lot in recent months, and we think it will continue to do so. But there is no room for complacency.
"We need to be sure inflation returns to normal and we continue to take the decisions necessary to do just that."
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