UK interest rates have been held at 5.25% as the Bank of England said it is "much too early" to think about cutting borrowing costs, despite giving a bleak outlook for the economy.The Bank's governor, Andrew Bailey, insisted that households and businesses will feel more pain if price rises do not ease.The Bank's Monetary Policy Committee voted by a six-three majority to keep the base rate at 5.25%. Three members preferred to increase rates to 5.5%.

UK interest rates have been held at 5.25% as the Bank of England said it is "much too early" to think about cutting borrowing costs, despite giving a bleak outlook for the economy.The Bank's governor, Andrew Bailey, insisted that households and businesses will feel more pain if price rises do not ease.The Bank's Monetary Policy Committee voted by a six-three majority to keep the base rate at 5.25%. Three members preferred to increase rates to 5.5%.