Bank of England joins US Fed in keeping interest rates unchanged

The Bank of England, in a move that caught many by surprise, decided to halt its interest rate increases, following in the footsteps of the US Federal Reserve.

As reported by AP, this decision came after an unexpected drop in UK inflation, which alleviated concerns about the speed of rising prices.

Contrary to expectations from just two days ago, the central bank chose to maintain its primary interest rate at a 15-year high of 5.25%. This decision will come as a relief to numerous homeowners who have been contending with rising mortgage rates for nearly two years due to previous rate hikes.

This development reflects a broader trend among central banks worldwide, as many seem to be nearing the conclusion of an aggressive cycle of interest rate increases aimed at curbing inflation driven by the economic rebound following the COVID-19 pandemic and the conflict in Ukraine involving Russia.