LONDON, Sept. 18 (Xinhua) -- The Bank of England (BoE) has kept its benchmark interest rate unchanged at 4 percent as Britain's latest inflation level almost double the bank's target, according to a statement released by Britain's central bank on Thursday.
At its meeting ending Wednesday, the BoE's Monetary Policy Committee (MPC) voted by a majority of seven to two to maintain the rate, with two members favoring a 0.25 percentage point cut to 3.75 percent.
The bank noted that Britain's annual Consumer Price Index (CPI) inflation stood at 3.8 percent in August and is projected to stay around 3.75 percent through the second half of the year, with a temporary peak of 4 percent in September.
It cautioned that upside risks to medium-term inflationary pressures remain significant, saying: "The MPC remains alert to the risk that this temporary increase in inflation could put additional upward pressure on the wage and price-setting process."
The BoE's decision was widely anticipated after the August inflation reading confirmed that price growth remains stubbornly high, said David Bharier, head of research at the British Chambers of Commerce (BCC). He added that the BCC expects no further rate cuts this year, citing global headwinds such as tariffs, geopolitical conflicts, and fragile supply chains, alongside domestic factors including higher taxes and uncertainty ahead of the Autumn Budget.
In early August, the BoE cut its benchmark rate from 4.25 percent to 4 percent, the lowest level in more than two years, in an effort to support the country's weakening economy. ■
