The Bank of England has held interest rates at 4 per cent, pausing its cycle of monetary easing as governor Andrew Bailey warned that Britain was “not out of the woods yet” on inflation. The decision, taken by the Bank’s nine-member Monetary Policy Committee (MPC), saw seven members vote to leave rates unchanged while two backed a quarter-point cut. The outcome was in line with market expectations, with investors betting that rates will remain at 4 per cent for the rest of 2025. Alongside the rate decision, the central bank announced that it would slow the pace of government bond sales. Economic growth “remained subdued,” the MPC statement said, highlighting concerns that workers demanding higher pay and firms raising prices could keep inflation sticky.