UK interest rates have been held at 5.25%, providing some relief for borrowers, as the Bank of England downgraded its forecast for economic growth and said inflation could stay higher for longer.
“We’ve held rates unchanged this month, but we’ll be watching closely to see if further rate increases are needed,” Mr Bailey said. The outlook for this year remains the same, with gross domestic product expected to grow 0.5%. The Bank, which uses interest rates as a tool to bring inflation down to its 2% target, said price rises have been slowing more rapidly than previously expected.
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