Bank of England holds interest rates at 4% and slows scheme to sell stock of UK bonds

Move to reduce holdings of government debt could reduce market jitters and Treasury’s borrowing costs

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The Bank of England has left interest rates on hold at 4% and will slow the pace of its “quantitative tightening” programme in the year ahead to avoid distorting jittery bond markets that set the cost of government debt.

The central bank’s nine-member monetary policy committee voted 7-2 to leave borrowing costs unchanged, after five cuts since summer 2024, including a reduction last month.