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Interest rates live: Bank of England holds interest rates and downgrades growth in blow for Labour

The Bank of England has decided to maintain the current interest rate at 5.25%, marking the seventh consecutive meeting without a change. This decision comes amidst a backdrop of economic challenges, including a downgrade in the UK's growth forecast. The Monetary Policy Committee (MPC) voted 8-1 to keep rates steady, with one member advocating for a rate cut. The Bank revised its growth forecast downwards, now expecting the UK economy to grow by 0.5% this year, a decrease from the previously anticipated 0.75%. This adjustment reflects concerns over persistent inflation, which, although expected to decrease, remains above the target. The decision to hold rates is seen as a cautious approach to manage inflation while supporting economic recovery, impacting sectors like housing and potentially influencing political parties' economic strategies, particularly Labour, as the UK approaches an election.

Read the Full MSN Article at:
[ https://www.msn.com/en-us/money/other/interest-rates-live-bank-of-england-holds-interest-rates-and-downgrades-growth-in-blow-for-labour/ar-AA1w6e2B ]