Bank of England keeps interest rates unchanged leaving home-buyers to wait for loan cuts
STAYING PUT Bank of England keeps interest rates unchanged leaving home-buyers to wait for loan cuts
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HOME-buyers were made to wait for loan cuts as Bank chiefs held steady on interest rates.
Borrowing costs were kept at 4.25 per cent yesterday as oil prices rise because of the Israel-Iran conflict and inflation remains stubbornly high.
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The Bank of England has chosen to keep interest rates unchanged (pictured Andrew Bailey, Governor of the Bank of England)
Credit: Reuters
Businesses were also found to be increasingly reluctant to hire staff.
Six members of the Bank of England Monetary Policy Committee voted to stick with the same rate, with the other three calling for a cut of 0.25 per cent.
Bank Governor Andrew Bailey said: 'Interest rates remain on a gradual downward path, although we've left them on hold today.
"The world is highly unpredictable.'
Mr Bailey added: 'In the UK we are seeing signs of softening in the labour market.
"We will be looking carefully at the extent to which those signs feed through to consumer price inflation.'
The Tories last night said interest rates are staying higher for longer due to Labour's Jobs Tax and borrowing which is driving up inflation and killing growth.
Shadow Chancellor Mel Stride: 'To plug the hole they have created, we now know Rachel Reeves has a secret plan to raise taxes.
"Make no mistake – more taxes are coming."
Chancellor Rachel Reeves told The Times CEO Summit that she wants the Bank to set the right policy for bringing down inflation to the 2 per cent target.
She added that double-digit inflation seen a few years ago 'was so challenging for businesses, but also family finances, which also has a knock on impact on business'.
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