UK Interest Rates held at 5.25% for Seventh Time in a Row

The Bank of England has held interest rates at 5.25% for the seventh time in a row.

Despite inflation hitting the central bank’s target level for the first time in three years, most economists have predicted rates, currently at a 16-year high, will not be cut.

They believe the bank will wait to see if inflation stays at 2 per cent in the coming months, with a first rate cut in the autumn now looking more likely than the summer.

The bank’s decision comes in the run up to the general election, with policies for the future of the UK economy a key battleground for political parties.

After data revealed inflation fell to 2 per cent in the year to May, the Conservatives said it proved their “difficult decisions” were paying off.

However, Labour responded saying pressures on family finances were “still acute”.

The Bank of England is independent of the government and its main role is to keep inflation, which measures the rate consumer prices rise at, stable at 2 per cent.