BoE Keeps Interest Rate Unchanged Amid Sticky Inflation

The Bank of England (BoE) maintained its benchmark interest rate at 4.5% on Thursday, leaving financial markets largely unchanged.

This decision was widely anticipated by analysts and reflected in the muted reaction from traders.

The British pound initially edged higher against the euro after the announcement but quickly settled back to its previous level of around 1.1750.

The BoE's decision was influenced by persistent inflationary pressures in the services sector and a tight labor market, according to the Monetary Policy Committee (MPC).

The central bank emphasized that monetary policy will remain restrictive for an extended period until there is clearer evidence that inflation is sustainably returning to the 2% target.