For the first time in nearly two years, the Bank of England paused its regimen of rate hikes.
The central bank’s Monetary Policy Committee (MPC) voted 5-4 to maintain the Bank Rate at 5.25% – the dissenting members sought a 0.25 percentage point increase to 5.5%. The current level the highest since early 2008 and the MPC’s decision ended a streak of 14 consecutive rate increases.
However, more rate hikes could occur in the near future.
“Inflation has fallen a lot in recent months, and we think it will continue to do so,” Andrew Bailey, the governor of the central bank, said in a statement. “But there is no room for complacency.”
The Bank of England’s decision comes a day after its American counterpart, the Federal Reserve, paused its rate hike regimen.