Bank of England Maintains 15-Year High Interest Rates, Cautions Against Complacency on Inflation

The Bank of England has decided to keep interest rates unchanged at 5.25%, maintaining a 15-year high, as inflation continues to fall from record levels. Governor Andrew Bailey stated that higher interest rates are working to curb inflation, but further rate increases will be closely monitored. The Bank expects a sharp slowdown in inflation and has lowered its forecasts for the UK economy, predicting zero growth from now until 2025. While the decision is welcomed by homeowners, mortgage rates remain higher than historic lows.