Surprising Data Prompts Bank of England to Pause Interest Rate Increases

The Bank of England ended its streak of raising interest rates at 14 consecutive meetings after new data showed inflation in the UK cooling faster than expected. The Bank has aggressively raised rates since December 2021 to curb high inflation, taking its main policy rate from 0.1% to 5.25% in August. UK inflation dipped to 6.7% in August, below forecasts of 7%, as food and accommodation prices eased. Core inflation also dropped.