20 Dec 2024UK interest rates will remain at 4.75% after the Bank of England voted to hold borrowing costs. While the Bank voted to keep rates unchanged, three members of the Monetary Policy Committee (MPC) wanted to reduce them to 4.5%. The split came as the Bank said it thought the economy had performed worse than expected, with no growth at all between October and December. Rates are still expected to fall gradually next year, with the first cut possibly coming in February. Stuart Morrison, Research Manager at the British Chambers of Commerce (BCC), said: 'With inflation ticking up and wage growth accelerating, it's unsurprising the Bank of England is adopting a cautious approach by holding interest rates at 4.75% 'Our recent forecast suggests further cuts next year, but with economic clouds gathering, the path to lower borrowing costs is by no means clear. 'The pressure cooker of business costs, most notably national insurance, means 2025 will be very challenging for the tens of thousands of businesses we represent. We need ministers to urgently speed up business rates reform and work with firms to ease the cost burden they are facing from the proposed Employment Rights legislation. 'Easing cost pressures on business is one of the key ways to boost investment and accelerate economic growth.'