Bank warns of global uncertainty as it holds rates

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UK interest rates have been held at 4.5% by the Bank of England.

Borrowing costs had been widely expected to be left unchanged with inflation, the rate at which prices rise over time, at 3% and predicted to increase further in the coming months.

The base interest rate dictates the rates set by High Street banks and lenders. The relatively higher level seen over the last couple of years has meant people are paying more to borrow money for things like mortgages and credit cards, but savers have also received better returns.

The Bank has said it expects future rate cuts to be made gradually.