BOE Keeps Rates Unchanged for First Time in Almost Two Years
- Officials split 5-4, with Andrew Bailey casting decisive vote
- Pound extends losses, and investors pare bets for more hikes
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The Bank of England halted for now the most aggressive cycle of interest-rate rises in more than three decades as concerns about inflation gave way to signs the economy is slipping into a recession.
The central bank held its key rate at 5.25%, ending a series of 14 successive hikes since December 2021, when rates were just 0.1%. Five members of the Monetary Policy Committee voted to leave rates unchanged and four wanted to raise them to 5.5%. Governor Andrew Bailey, who had the casting vote, chose to hold.