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The Bank of England has kept benchmark rates on hold at 4.5 per cent as it grapples with the combination of a sluggish economy and continuing price pressures.
Thursday’s decision by the Monetary Policy Committee followed a quarter-point cut last month, when the BoE also halved its 2025 growth estimate to 0.75 per cent.
Inflation reached 3 per cent in January, and is set to climb further above the central bank’s 2 per cent target by mid-year.
Figures published earlier on Thursday showed wage growth remaining strong, at a 5.9 per cent annual rate for the three months to January, excluding bonuses.
Before the MPC meeting, traders had fully priced in two further quarter-point cuts to base rates this year, with the first expected to come in June, according to the levels implied by swaps markets.
The pound was flat immediately after the decision, down 0.3 per cent on the day at $1.297.
This is a developing story
