Central bank holds rates and signals cuts may come next spring

The central bank left its benchmark interest rate unchanged on Wednesday but gave its clearest hint yet that borrowing costs could fall in the spring.

In a statement, the bank said price rises had slowed for four consecutive months and that wage growth was “moderating as expected”.

What it means for households

Mortgage lenders are expected to keep fixed-rate deals broadly stable. Savers, who have benefited from higher rates, may see returns begin to drift lower over the winter.

Markets had largely priced in the decision; the currency was little changed.

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