The Bank of England (BoE) has chosen to hold its base interest rate at 4%, resisting pressure to ease borrowing costs despite a faltering economy and joblessness creeping higher.
The decision, though hardly a shock to financial markets, underscored the central bank’s overriding battle with stubbornly high inflation. Official figures put UK inflation at 3.8% in August, with the BoE warning it will nudge up to 4% this month. Though markedly down from last year’s punishing double digits, inflation remains well above the 2% comfort zone the bank is sworn to defend.
Britain’s policymakers are hardly alone. Other global central banks have also opted for caution, keeping interest rates pinned even as growth stalls. The U.S. Federal Reserve broke ranks slightly, announcing its first rate cut of the year.
For households and businesses, the message is bitter but clear: relief will not come quickly. The cost of living remains bruising, and with borrowing still expensive, the squeeze looks set to linger.
