Bank of England voices inflation concerns as it holds main UK interest rate at 4%

LONDON (AP) — The Bank of England held its main interest rate at 4% on Thursday as U.K. inflation concerns weigh on policymakers.

The decision was widely anticipated, as was the split of votes on the nine-member Monetary Policy Committee. Seven of the panel backed the decision, while two voted for a quarter-point reduction to 3.75%.

The minutes of the meeting showed that the majority were concerned about the path for inflation, which remains stubbornly high. Figures on Wednesday showed inflation held steady at 3.8% in the year to August, double the bank’s 2% target.

“Although we expect inflation to return to our 2% target, we’re not out of the woods yet, so any future cuts will need to be made gradually and carefully,” Governor Andrew Bailey said.

All eyes now turn to the next rate-set