The Bank of England kept UK interest rates at 4.25 per cent today amid rising food inflation and the threat of surging oil prices pushing up the cost of living.
Most economists had predicted that the Bank's Monetary Policy Committee (MPC) would opt to keep rates on hold following its latest meeting.
Six members opted to hold and three preferred to cut, with the MPC saying a 'gradual and careful approach' to reducing borrowing costs was still the right course of action.
Bank governor Andrew Bailey added: 'Interest rates remain on a gradual downward path, although we've left them on hold today. The world is highly unpredictable.'
He also said that there were 'signs of softening in the labour market' - referring to indicators including slower hiring and wage growth easing - which were being closely watched to see how far they feed into UK inflation.
