The Bank of England kept borrowing costs on hold with a 5-4 vote, hinting at a possible rate cut after the government’s budget later this month. Inflation in the UK remains high at 3.8%, but recent data suggests it may have peaked, leading to a forecast of falling inflation. The MPC expressed concerns about weaker demand and a struggling job market, signaling a potential downward trend in interest rates. Market expectations for a rate cut in December rose following the decision to keep rates unchanged. The BoE also revised its guidance on rate outlook as part of a wider overhaul in communication.

Read more at Yahoo Finance: Bank of England keeps rates on hold in knife-edge vote that hints at December cut