Bank of England holds Interest Rate at 5.25 pct.

LONDON, March 21 (KUNA) -- The Bank of England announced, Thursday, the decision to maintain the interest rate at 5.25 percent, marking the fifth consecutive time.

The Monetary Policy Committee (MPC), in its regular report, confirmed that eight out of its nine members voted to keep the interest rate unchanged, while one member voted to reduce it by a quarter-percentage point to 0.5 percent. The committee cited ongoing concerns about inflation rates as the reason for its decision, despite a decrease last month to 3.4 percent from a peak of 11.1 percent in October 2022.
MPC noted that there were positive signs of a decrease in the inflation rate, however unsure if it would reach the two percent threshold and remain at that level until a decision was made to reduce interest rates.
Regarding risks to prices, the committee warned of the material risks posed by the conflict in the Middle East and the disruption of the Red Sea, one of the world's busiest shipping lanes, which could lead to a rise in prices once again. (end) mrn.sm.