Divided Bank of England holds key interest rate at 4% despite hopes inflation has peaked

The Bank of England kept its main interest rate unchanged at 4% on Thursday with policymakers indicating that they need more information on how swiftly inflation will fall back towards their target. Thursday’s decision by the nine-member rate-setting body to maintain Bank Rate — a benchmark for mortgages as well as consumer and business loans — was widely anticipated, though some economists thought there was a chance that borrowing rates would be reduced by a further quarter of a percentage point to 3.75%. The vote was tight though, with five voting for unchanged rates and four backing a cut.