UK interest rates: Bank of England holds benchmark rate at 4%; inflation lingers at 3.8%
Fresh data released on Wednesday showed annual inflation holding steady at 3.8 per cent in August, AP reported.The central bank began lowering borrowing costs in August 2024 after inflationary pressures from Russia’s invasion of Ukraine started to ease.
Since then, the Bank has reduced rates in a measured manner every three months.If the current pattern continues, the next cut would be due in November.
However, economists remain divided on the outlook, pointing to stubborn price pressures and relatively high wage growth that have made inflation “stickier than anticipated.
