The Bank of England paused its interest rate hike campaign for the first time in nearly two years in response to unexpected inflation data in August
The UK's main borrowing cost for commercial banks remains at 5.25%, the highest level since February 2008
The Federal Reserve and Switzerland's central bank also kept interest rates on hold during the same period
This decision offers relief to UK households struggling with mortgage repayments and may lead to future cuts in mortgage rates
The Bank of England's monetary policy committee had a close vote, with five members supporting the current rate and four favoring a quarter-point increase to 5.5%
While the bank did not rule out future rate hikes, it emphasized the need to keep borrowing costs high to combat inflation
Many analysts believe the bank's tightening cycle is complete, though rates may stay at their current level longer than expected
The decision is welcomed by consumers as it suggests interest rates may have peaked, offering hope of lower borrowing costs
The improved inflation figures may pave the way for lenders to reduce mortgage rates in the coming weeks
Despite recent easing, UK mortgage rates remain significantly higher than a year ago, impacting consumers' finances