The Bank of England has taken its decision on interest rates.

The Bank of England has held interest rates at four per cent amid caution around high inflation levels ahead of Chancellor Rachel Reeves’ crucial Budget in three weeks.

The Bank’ s Monetary Policy Committee (MPC) voted 5-4 to hold interest rates as Governor Andrew Bailey, who made the deciding call at the latest meeting, said he would “prefer to wait” before backing further cuts.

Policymakers at the Bank said the crunch decision weighed up contractions in the jobs market, which could lower inflation levels, and high inflation expectations of around 4 per cent among households in recent months, which would have the adverse effect.

Inflation is only set to hit the Bank’s two per cent inflation target in the second quarter o

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