Related topic: Interest rates

A hold was widely predicted after UK CPI inflation held steady at 2.8% in May.

The surprise inflation figures "could trigger a mortgage price war", industry experts predict.

As a result, many expect the Bank of England to adopt a 'wait and see' approach to interest rates at its meeting next week.

Greene has hinted at future rate rises, arguing for a 'proactive approach' to growing inflation.

Bailey believes the Bank has already effectively tightened monetary policy by taking the prospect of future rate cuts off the table.

Despite the surprise ease in inflation, industry experts say the fall is unlikely to be sustained.

The IMF has upgraded GDP from 0.8% to 1% for 2026, but warns that domestic and international risks remain.

One member voted to increase Bank Rate to 4%.

The rise reflects higher energy prices alongside wider economic uncertainty, although many industry experts expect the Bank of England to pause rather than hike rates.

Could better-than-expected GDP figures prompt the Bank of England to hold rather than hike rates?