The Bank of England has decided to hold the base interest rate at 5.25% for the second consecutive month.

A decision to keep the rate static was widely expected with inflation, at 6.7%, apparently under control, albeit not dropping.

Last month, the Bank held the rate after 14 consecutive increases, since the end of 2021.

Mortgage rates have started to fall slowly to reflect the Bank’s decisions, but are still much higher than a year ago.

The Bank’s Monetary Policy Committee voted by a majority of 6–3 to maintain the rate at 5.25%. Three members preferred to increase it by 0.25 percentage points, to 5.5%.

“UK economic activity is weakening, and inflation is on a downward trend. Now is the time to pause and monitor rather than adding further pressure onto borrowers and consumers.”