What does the Bank's rate decision mean for your finances?

The Bank's decision will have a knock on effect on personal finances

UK households who were hoping for a rate cut today may be disappointed after the Bank of England held interest rates at four per cent.

The decision came amid concerns surrounding high inflation ahead of Chancellor Rachel Reeves’ crunch Budget later this month.

Governor Andrew Bailey , who had the deciding vote, said he would “prefer to wait” before backing further cuts, with the Bank’s Monetary Policy Committee voting 5-4 to hold interest rates at 4 per cent.

Alice Haine, personal finance analyst at Bestinvest, said: “The decision to pause came despite a backdrop of sluggish economic growth, weak productivity, rising unemployment levels and the looming prospect of a tax-raising autumn Budget.

“Amid this uncertainty