Bank of England holds interest rate at 4%
The Bank of England is holding its main interest rate at 4%, even though inflation in August was 3.8%—still well above the target of 2%.
The decision, backed by most members of the monetary policy committee, shows the Bank is worried about prices staying high but isn't ready to make borrowing cheaper just yet.
BoE's cautious approach
This move comes after several rate cuts since summer 2024, amid rising food costs and unemployment hitting a four-year high.
Last month's cut was hotly debated, with some wanting a bigger drop.
Meanwhile, Chancellor Rachel Reeves says tackling living costs remains a priority while keeping government spending in check.
Unlike the US Federal Reserve's recent cut, the BoE is taking a more cautious approach to balance inflation and jobs.