Bank of England keeps rates at 4.25% as inflation stays elevated

The Bank of England held its benchmark interest rate at 4.25% on Thursday, choosing to pause again as policymakers weigh stubborn inflation against signs of slower economic momentum. The decision extends the central bank’s cautious approach after a period of repeated moves to curb price growth.

Officials said they are still monitoring how global trade tensions could affect prices and business activity, while domestic cost pressures remain a concern. The bank has been trying to bring inflation back toward its target without triggering a sharper slowdown in growth or a deeper squeeze on households.

Markets had been watching the decision closely for clues about the next phase of monetary policy. By keeping rates unchanged, the Bank of England signaled that it wants more evidence that inflation is easing sustainably before moving again.

The pause leaves borrowing costs steady for consumers and businesses, but it also underscores how difficult it has been for policymakers to fully contain inflation while the wider economy remains fragile.