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AP-National

Bank of England joins US Fed in keeping interest rates unchanged after inflation declines

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Published 3:09 AM

By PAN PYLAS
Associated Press

LONDON (AP) — The Bank of England has paused nearly two years of interest rate increases after a surprising fall in U.K. inflation eased concerns about the pace of price rises. In a development Thursday that few predicted just two days ago, the central bank kept its main interest rate unchanged at a 15-year high of 5.25%. It comes to the relief of millions of homeowners who are facing higher mortgage rates. The U.S. Federal Reserve also held rates steady a day earlier. News Wednesday that inflation unexpectedly fell to 6.7% in August, its lowest level since Russia invaded Ukraine in February 2022, clearly influenced the bank’s decision.

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