Bank of England Holds Rates Steady But Warns of More Hikes as Inflation Bites and Growth Stalls
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The Bank of England held interest rates at 5.25% for the second time in a row, but warned they will stay high or potentially rise again to combat inflation.
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Inflation is predicted to fall sharply, but the Bank warned economic growth will flatline with zero growth in 2024.
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Higher interest rates are already hitting many households through increased mortgage payments, with more impacts to come.
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The Bank's governor said it's too early to consider rate cuts and rates will stay higher for longer to bring down inflation.
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The government said the economy has been more resilient than expected but aims to boost growth, including in the upcoming Autumn Statement.