Bank of England holds rates amid inflation concerns

On 18th September, the Bank of England voted 7–2 to keep interest rates steady at 4%, resisting calls for further easing amid persistent inflationary pressures.

The decision follows August’s 25 basis point cut and reflects caution over elevated wage growth and stagnant UK GDP.

Inflation held at 3.8% in August, nearly double the Bank’s 2% target. Policymakers signalled a ‘gradual and careful’ approach to future cuts, citing upside risks to medium-term inflation.

With economic growth flat and the jobs market cooling, analysts now expect the next rate cut to come in early 2026.