Bank Of England Holds Interest Rates As Inflation Shows Signs Of Easing. Interest rates have been held at 4%, signalling that inflation in the UK has “peaked” and could now be on a gradual downward path. The decision, reached in a close 5-4 vote, marks a cautious pause as policymakers assess whether price pressures will continue to ease. Governor Andrew Bailey said he would “prefer to wait and see” before cutting rates, even as inflation remains at 3.8%, nearly double the Bank’s 2% target. The move comes just weeks before Chancellor Rachel Reeves delivers her Budget on 26 November, where speculation over possible tax rises continues to grow. Reeves welcomed the Bank’s outlook, saying it showed inflation would fall faster than expected and that she would make “fair choices” to strengthen the economy. But Shadow Chancellor Mel Stride hit back, accusing her of reckless borrowing and warning that higher rates are “the price of Labour’s mismanagement.” Instructions: THIS VIDEO MUST NOT BE EDITED FOR LENGTH TO COMBINE WITH OTHER CONTENT