As widely predicted the Bank of England’s Monetary Policy Committee has decided to hold interest rates at 4.75%.
Money markets had bet on there being just an 8% chance of a rate cut at the final meeting of the Monetary Policy Committee this year.
Last month The Bank of England cut the base rate by 0.25% to 4.75% which marked the second rate cut since August when it was lowered from 5.25% to 5%. Prior to that, the BoE made 14 consecutive rate increases.
While the MPC voted to keep rates at 4.75%, three of the nine-member committee wanted to reduce it to 4.5%.
The split hints that a rate cut as soon as February could be on the cards – when the MPC next meets.
Commenting on the decision, Bank governor Andrew Bailey said: “We think a gradual approach to future interest rate cuts remains right but with the heightened uncertainty in the economy we can’t commit to when or by how much we will cut rates in the coming year.”
