The Bank of England (BoE) has voted to hold interest rates at 4.0% as policymakers weigh stubborn inflation against a weakening economic outlook. The Monetary Policy Committee (MPC) voted 7-2 to leave rates unchanged, with two members backing a 0.25% reduction. The Bank last cut rates in August, lowering the benchmark rate after several cuts already this year. The latest data showed inflation steady at 3.8% in August, almost double the 2% target, while growth flatlined in July. Although wage growth is beginning to ease, the BoE warned that risks of persistent price pressures remain. Sue Robinson, Chief Executive of the National Franchised Dealers Association (NFDA), said the outcome would bring some stability for both retailers and customers: “The decision to hold interest rates at 4.0 percent will offer a degree of reassurance for consumers and businesses alike with the sector continuing to navigate cost pressures and uncertainty.” Attention now turns to the BoE’s November meeting, which comes just ahead of the Government’s Autumn Budget. The MPC will meet two more times this year to discuss rates and the Bank said any further cuts would depend on whether it sees evidence that price pressures were easing. Economists remain divided on whether further rate cuts are likely this year, with some warning that high inflation could keep rates held for longer.