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Bank of England maintains interest rate at 5.25%

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Bank of England maintains interest rate at 5.25%

The Bank of England has held off a further interest rate hike, in a boost for hard-pressed borrowers after 14 consecutive rises to cool inflation.

The decision of the Monetary Policy Committee (MPC), which keeps the Bank rate at 5.25%, was seen as finely balanced despite the rate of inflation remaining well above its 2% target at 6.7%.

On the rate-setters’ minds also would have been the record pace for wage growth – bolstering pressure to hike again.

But the latest data on the pace of price increases released this week showed a big easing in so-called core inflation.

It suggested that rate rises to date were taking an effect and that further increases risked tipping a weakened economy more towards recession.

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