The Bank of England today voted 7 to 2 to keep interest rates at 5.25 percent, with the minority hoping to reduce rates by 0.25 percent to 5 percent.
Rates have now been held at 5.25 percent since August last year (2023), which marks ten months now of the base rate being at its highest level since December 2007.
With the July General Election around the corner, the Conservative Party had hoped that a rate cut today would help signal their efforts in reducing inflation.
The ONS shows May's inflation (based on CPIH) to be 2.8 percent, so still above the 2 percent target but trending downwards based on the previous months. The inflation of the services sectors however remains higher at 5.7 percent, sectors that are 80 percent of the UK's economy.
Overall, relatively good news for people with mortgages or other borrowing and bad news for savers looking for more interest return - for now. There are high probabilities on a rate cut of 0.25 percent in August and in the longer term the base rate will continue falling.