Bank of England Holds Rates Steady Despite Weakening Economy, Warns High Rates May Persist
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Bank of England held interest rates at 3-year high of 5.25% amid signs of weakening economy, but said rates may need to stay high for "extended period"
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Economic growth expected to be flat for much of next 2 years, while inflation to remain above 3% target until late 2024
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Six members voted to hold rates, but 3 pushed for a further 0.25 point increase to curb inflation risks
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Household incomes growing due to lower inflation, but unclear labor market picture complicates outlook
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Full impact of rate hikes yet to be felt, with housing market slowed so far but business investment and consumer spending lagging