UK 'not out of woods' on inflation, says Bank as rates held

The Bank of England has held its key interest rate at 4.5%, despite persistent concerns about inflation. The central bank's governor, Andrew Bailey, cautioned that the UK is "not out of the woods yet" regarding the country's ongoing battle with high inflation. While the rate hike pause was expected, the Bank's policymakers expressed their continued vigilance in tackling inflation, which remains well above the 2% target. Bailey acknowledged that the economy is showing signs of resilience, but warned that the fight against inflation is far from over. The Bank's decision comes amid a mixed economic outlook, with inflation slowly declining but still at elevated levels. Policymakers must navigate the delicate balance between controlling price pressures and supporting economic growth. The Bank's stance suggests that further interest rate increases may be necessary in the future, as it remains committed to bringing inflation back to its target level and ensuring the long-term stability of the UK economy.