Interest rates have been held at 3.75% as the Bank of England said the UK economy will grow at a slower rate than previously thought, and unemployment will worsen.The Bank downgraded its growth forecasts for 2026, from 1.2% to 0.9%, and 2027, from 1.6% to 1.5%.The central bank said it was keeping rates unchanged to make sure that inflation stays around its target level of 2%.

Interest rates have been held at 3.75% as the Bank of England said the UK economy will grow at a slower rate than previously thought, and unemployment will worsen.The Bank downgraded its growth forecasts for 2026, from 1.2% to 0.9%, and 2027, from 1.6% to 1.5%.The central bank said it was keeping rates unchanged to make sure that inflation stays around its target level of 2%.