Interest rate: Bank of England announces base rate will remain at 5.25% after unexpected fall in inflation
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The Bank of England has today (21 September) announced that the interest rate level will remain at 5.25%.
The Monetary Policy Committee has been expected to increase the interest rate once again as the country continues to deal with the cost of living crisis. Experts predicted a rise from 5.25% to 5.5%. This would have been the highest base rate level since February 2008.
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Hide AdHowever, this outcome became less likely according to economists, after it was announced that the UK's inflation rate had actually decreased in August. In a surprise to many, the ONS confirmed that the August inflation rate had dropped from 6.8% to 6.7%, the lowest level in 18 months.
The Bank of England had previously predicted the inflation rate to increase to 7.1% throughout the month owing to rising fuel prices. However, counteracting this was lower hotel and air fare costs and a slowdown in food price rises.
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