The Bank’s Monetary Policy Committee, which makes the decisions about rates, made the choice, saying it expects a sharp slowdown in inflation to 4.8 per cent in October’s figures.
Talking about it, however, the Bank’s governor Andrew Bailey said: “It’s much too early to be thinking about rate cuts.”
Meanwhile, Chancellor Jeremy Hunt said the UK economy is “far more resilient than many expected” and revealed that he would be setting out his plans for boosting the nation’s economic growth in his Autumn Statement on November 22.
The move comes after the Bank of England increased the base interest rate 14 consecutive times before pausing the rises in September.
For families across the UK, the increases have meant that those with a variable-rate mortgage have been paying more each month, and first-time homebuyers and people switching from fixed-rate mortgages have been paying more for new home loans.
Now, mortgage brokers expect rates to drop slightly but, even if their estimations are accurate, rates will remain significantly higher than what they used to be.
When is the next interest rate announcement?
The Monetary Policy Committee announced their decision to keep interest rates on hold on November 2, 2023.
The committee reveals its decisions about interest rates every six weeks, alongside factors that have led to the verdict.
This means that the next announcement will take place in mid-December.
While the committee has decided to keep the base interest rate at 5.25 per cent twice in a row, this doesn’t mean their decision will be the same next month. The Bank could decide to increase or decrease the rate as it sees fit.
However, several analysts believe the cycle of rising interest rates may be coming to an end.
Will interest rates go up?
While interest rates were maintained for the first time in 14 consecutive rounds, that doesn’t mean the next announcement will be the same.
Interest rates are expected to increase again, with some experts expecting interest rates to rise slightly by the end of the year. Find out more about why interest rates rise in our guide.
However, several analysts think the cycle of rising interest rates may be coming to an end, as they are currently at their lowest level since March 2022.
Since December 2021, the Bank of England has increased the base rate from 0.1 per cent to more than five per cent.