Bank Of England Keeps Interest Rate Unchanged: Bank Rate Stays At 4.25%

The Bank of England maintained its benchmark interest rate at 4.25% Thursday, as widely expected, maintaining its guidance for a gradual approach to monetary policy easing.

This decision followed the central bank’s decision to cut its Bank Rate by 25 basis points from 4.50% in May, the second cut this year, and the fourth reduction from last year’s peak of 5.25%.

However, the choice to keep interest rates unchanged was not unanimous, with three policymakers of the nine-member Monetary Policy Committee (MPC) voting to cut rates again.

"Given the outlook, and continued disinflation, a gradual and careful approach to the further withdrawal of monetary policy restraint remains appropriate. Monetary policy is not on a pre-set path," the BOE said, in the accompanying statement.

"The Committee will continue to monitor closely the risks of inflation persistence and what the evidence may reveal about the balance between aggregate supply and demand in the economy."