The Bank of England has left interest rates unchanged at 5%, but said it could reduce borrowing costs "gradually over time" if inflation stays low.Eight of the nine members on the Bank's Monetary Policy Committee (MPC) voted to keep the UK base rate unchanged on Thursday.The decision to pause comes a month after the central bank cut rates from 5.25%, instigating the first reduction since 2020 and delivering good news to borrowers facing higher costs.

The Bank of England has left interest rates unchanged at 5%, but said it could reduce borrowing costs "gradually over time" if inflation stays low.Eight of the nine members on the Bank's Monetary Policy Committee (MPC) voted to keep the UK base rate unchanged on Thursday.The decision to pause comes a month after the central bank cut rates from 5.25%, instigating the first reduction since 2020 and delivering good news to borrowers facing higher costs.