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The Bank of England has kept interest rates on hold at 4.75 per cent, after inflation edged up in November.
The Monetary Policy Committee’s decision, which was in line with forecasts from economists polled by Reuters, comes a day after the latest data showed that UK inflation rose to 2.6 per cent last month from 2.3 per cent in October.
Three of the nine MPC members voted for a quarter-point reduction.
The BoE cut rates by a quarter point at its previous meeting in November, but signalled at the time that another cut was unlikely until 2025. It has cut rates twice in 2024.
Traders also have been reining in expectations of cuts next year. Immediately before Thursday’s MPC meeting, investors were betting on two quarter-point cuts next year. In October they had expected four.
This is a developing story
