The Bank of England has kept interest rates at 5.25% as it forecast that inflation is set to fall to its target level a year and a half earlier than expected.Policymakers on the Monetary Policy Committee (MPC) voted to hold rates at their near 16-year high for at least another month.Andrew Bailey, the Bank's governor, said there had been "good news" on inflation in recent months but that the committee needs to see more evidence that inflation will fall "all the way to the 2% target, and stay the

The Bank of England has kept interest rates at 5.25% as it forecast that inflation is set to fall to its target level a year and a half earlier than expected.Policymakers on the Monetary Policy Committee (MPC) voted to hold rates at their near 16-year high for at least another month.Andrew Bailey, the Bank's governor, said there had been "good news" on inflation in recent months but that the committee needs to see more evidence that inflation will fall "all the way to the 2% target, and stay there" before it can lower interest rates.