Bank of England maintains interest rates at 16-year high

Bank of England maintains interest rates at 16-year high
Photo credit: Bank of England

The Bank of England has kept the UK's interest rates unchanged at 5.25%, the highest level in 16 years, reports Kazinform.

This marks the seventh consecutive hold as the Bank continues its fight against inflation, leading to higher mortgage payments.

Despite a slowdown in inflation, with May's rate dropping to the Bank's target of 2%, the decision to keep rates unchanged was widely expected.

The Bank of England, independent from the government, sets the base rate, which influences lending and borrowing costs.

Higher rates impact mortgage holders, particularly those without fixed-rate deals or whose fixed-rate terms are ending. Conversely, higher interest rates typically benefit savers, although banks may delay increasing savings rates.

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