Bank of England leaves interest rate unchanged at 5.25% once again

The Bank of England has announced today (November 2) that it will keep interest rates the same for the second time in a row.

It means that the base rate will remain at 5.25 per cent while inflation currently remains stuck at 6.7 per cent, according to most recent figures - although this may change on November 15. It comes after policymakers made a similar decision last September, showing a break in the trend of increasing interest rates that have been seen for the first half of this year.

While the base rate will not be going up today, it means that homeowners whose mortgage payments are dictated by the figure will still be paying high rates compared to the far lower pre-pandemic levels where interest was close to zero per cent. While experts initially warned of potential increases to the interest rate, the Bank pointed at "long-term government bond yields" increasing across "advanced economies" and showing a stronger-than-expected growth in GDP.

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It said: "Since the MPC’s previous meeting, long-term government bond yields have increased across advanced economies. GDP growth has been stronger than expected in the United States. Underlying inflationary pressures in advanced economies remain elevated. Following events in the Middle East, the oil futures curve has risen somewhat while gas futures prices are little changed."

The Bank also highlighted that some key factors could influence future decisions, such as labour market activity and "subdued economic activity". It added: "Since the MPC’s previous decision,