Bank of England keeps interest rates on hold at 5.25%

The Bank of England has held interest rates at 5.25%, marking the seventh consecutive time the central bank has left the cost of borrowing unchanged.

Financial markets expected the decision, despite a fall in inflation last month to the Bank’s 2% target as price rises eased for some items including food.

However, the inflation figures showed services inflation was 5.7% in May, down only slightly from 5.9% in April.

Savers will cheer the decision to leave rates on hold, but it will come as a blow to many mortgage payers who need to refinance their loans over the next few months and would have been hoping for lower borrowing costs.

More details soon …