BoE Holds Rates at 5% Amid Mixed Indicators

The Bank of England (BoE) has decided to maintain its interest rate at 5% in its September meeting, following a reduction from 5.25% in August. The Monetary Policy Committee voted 8-1 to hold the rates steady, diverging from the Federal Reserve's aggressive half-point cut to 4.8% to address a weakening job market. This cautious approach is driven by mixed economic indicators, including a modest inflation rate of 2.2% but rising service sector inflation and high wage growth. Analysts anticipate that the BoE may consider another rate cut in November if economic conditions warrant it. Governor Andrew Bailey emphasized the importance of gradual easing to ensure inflation remains under control.