Bank of England MPC plays Scrooge as high interest rates look set to stay

Markets think a cut to help borrowers could come in May, but James Moore says the pain could last a lot longer

The unsurprising decision keeps borrowers’ noses to the grindstone. Bah humbug! (Getty)

There were no early Christmas presents from the Bank of England on Thursday, as interest rates were held at a painful 5.25 per cent

It was a widely-expected decision; what mattered more was what the Monetary Policy Committee (MPC) had to say about it. And there was nothing festive in its message – for borrowers, small businesses, or indeed anyone else.

Despite Britain’s stagnant economy, with nothing much expected in the way of growth expected for the end of this year or through most of 2024, three members of the MPC voted to raise even higher, to 5.5 per cent.