Bank of England holds interest rates at 5.25 pct

LONDON, Feb 1 (KUNA) -- The Bank of England announced on Thursday that it would hold interest rates at 5.25 percent for the fourth time in a row.

The bank's monetary policy committee (MPC) voted 6-3 in favor of holding the rate - two wanted an increase, one wanted a cut.
The current rate, which was set in August, is the highest for nearly 16 years, and is expected to fall later this year, according to the Bank.
Interest rates are the Bank's key tool for tackling inflation, which meant the increase in the price of something over time.
Inflation in the UK peaked in October 2022 but fell last year and is now at four percent. The Bank's target is two percent.
The Bank said inflation could hit percent "within a few months, before rising slightly again.
"We will keep interest rates high for long enough so inflation settles at 2%," it said. (end) nbs.gta.