UK interest rates left on hold amid uncertainty

UK INTEREST rates have been left on hold as the Bank of England said it was keeping watch on a “highly unpredictable” world amid rising energy prices.

- SION BARRY

The Bank's Monetary Policy Committee (MPC) decided to keep rates unchanged at 4.25%.

In a split vote, with six members opting to hold and three preferring to cut, the MPC said a “gradual and careful approach” to reducing borrowing costs continued to be the right course of action.

Bank governor Andrew Bailey said: "Interest rates remain on a gradual downward path, although we've left them on hold today. The world is highly unpredictable.”

He added that there were “signs of softening in the labour market” - referring to indicators including slower hiring and wage growth easing which were being closely watched to see how far they feed into UK inflation.

The committee said it was alert to concerns about conflict in the Middle East, which has escalated in recent days with hostilities between Israel and Iran.