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Central Bank keeps rates at 4% after narrow vote but hints cuts may come soon.

The Bank of England's Monetary Policy Committee (MPC) has decided to keep interest rates at their current level. The was split 5-4, with a significant minority in favour of a reduction in borrowing costs.

Price rises in the UK are well above the Bank’s 2% target and higher than other major developed economies. Price stability is their primary responsibility, typically achieved by adjusting interest rates.

The Bank's latest economic forecasts suggest that inflation has reached its peak and expects it to fall in the coming months.

Nevertheless, the Bank's leadership has stated they want to be more confident that inflation is firmly under control before implementing further interest rate cuts.

Economic growth is forecast to be modest over the coming years, with growth in GDP of 1.2% next year and 1.6% in 2027.

The narrow vote in the MPC meeting suggests another rate cut could occur relatively soon, potentially before the end of the year.