Let's recap some of the key lines from today, after the Bank of England held interest rates at 4%:

• The move did not come as a surprise. Although the inflation rate held at 3.8% in September, coming in below forecasts, most Bank watchers were not expecting a change in interest rates today
• The Bank said it judged inflation to have peaked - policymakers voted 5-4 in favour of leaving rates unchanged but said borrowing costs were "likely to continue on a gradual downward path"
• Bank governor Andrew Bailey said rather than cutting interest rates now, he would "prefer to wait and see" if price rises continued to ease this year
• The Bank's decision comes ahead of the government's Budget on 26 November, where speculation has grown that Chancellor Rachel Reeves will raise taxes
• Reeves said the latest forecast "shows that inflation is due to fall faster than previously predicted", but shadow chancellor Mel Stride said interest rates were "staying higher for longer because Rachel Reeves does not have a plan or a backbone"

We're now wrapping up our coverage, but you read more analysis in our news story.

Kevin Peachey
Cost of living correspondent

You’d be mistaken to think that a hold in interest rates by the Bank of England has no impact on the cost of mortgages and other loans, or the returns on savings.

True, the million or so homeowners on tracker or variable mortgage deals will see no change to their monthly repayments.

But lenders and savings providers will be looking at the wider context very closely as they price deals for first-time buyers, those renewing home loans, and savers.

The MPC’s vote was close, and the expectation of a rate cut in December seems even greater now.

Many major providers of fixed-rate mortgages have been reducing the interest rates on new deals, partly owing to that speculation. That means the December cut could already be “priced-in”, although more may now follow suit.

However, savings rates could worsen too. So, the impact very much depends on your personal, financial circumstances.

Bank thinks the rates path is downwards (gradually) from herepublished at 13:42 GMT

13:42 GMT

Michael Race
Business and economics reporter, at the Bank of England

Image source, Reuters

The debate by the Bank of England this month was based on whether to wait and see or not on cutting interest rates.

It decided against lowering borrowing costs, keeping the Bank rate at 4%, but with inflation deemed to have peaked, the door is ajar over a rate cut just before Christmas.

Saying that, Bailey and his colleagues were keen to point out that "risks" over inflation remain and that policymakers needed to see more evidence that the peak had passed before cutting rates.

With the Budget on 26 November, the Bank faced various questions over potential tax rises and government policy. Those were patted back with a straight bat. Bailey would not been drawn on such speculation.

So it's as you were on rates then, but the Bank thinks the path is downwards (gradually) from here.

Lucy Hooker
Business reporter

Governor Bailey voted against a cut this month - swinging the Bank's decision that way this time. We have heard some of his thinking on the decision.

But with the vote so close there's also a lot of attention on how other MPC members voted - and what they might do next month.

The four other members who voted for rates to be held at 4% include deputy governor Clare Lombardelli who, like Bailey, is still concerned about inflationary pressures.

Huw Pill, the Bank's chief economist, believes cuts so far have been too fast. He pointed to what he said was his "longstanding concern" that structural changes in price and wage-setting behaviour was generating more persistent inflation.

External MPC members Catherine Mann and Megan Greene are also hawkish on inflationary pressures.

Among those who voted for a cut were Sarah Breeden, another deputy governor, who switched sides from her previous hold position, observing that "slack continues to build" in the economy.

Deputy governor Dave Ramsden agreed saying "previous uncertainties around the disinflation process have reduced".

The two remaining external members also both voted for a cut.

Swati Dhingra said the interest rate should already be lower to account for the lag - or delay - in the impact feeding through to the real economy.

Alan Taylor said current borrowing costs were too restrictive and he worried the Bank would undershoot its 2% inflation target next year.

Shadow chancellor Mel Stride hits out at Rachel Reeves in the wake of today's decision on interest rates, saying "she does not have a plan or a backbone".

"With inflation running at almost double the target rate, families are facing rising prices in the shops," he says.

"The UK has the highest inflation in the G7 thanks to Rachel Reeves's jobs tax and reckless borrowing spree.

"And yet she is once again preparing to hike taxes, leaving us trapped in a doom-loop."

Image source, PA Media

Reacting to the Bank's decision, Chancellor Rachel Reeves says "under this government, we have seen five interest rate cuts that have helped bring down costs for families and businesses and today's forecast shows that inflation is due to fall faster than previously predicted".

"At the Budget later this month I will take the fair choices that are necessary to build the strong foundations for our economy so we can continue to cut waiting lists, cut the national debt and cut the cost of living."

As a reminder, in her pre-Budget speech this week, Reeves said she would make "necessary choices" on 26 November after the "world has thrown more challenges our way".

She did not rule out a U-turn on Labour's general election manifesto pledge not to hike income tax, VAT or National Insurance.

Bailey is asked whether the Bank's decision to hold interest rates at 4% today suggests he was "unconvinced" by Chancellor Rachel Reeves's message in her pre-Budget speech this week.

Bailey refuses to be drawn, saying he is “not passing judgement" on what the chancellor said, emphasising that the Bank bases its decisions on "policies that have been announced".

Michael Race
Business and economics reporter, at the Bank of England

Asked about the upcoming Budget and rumours of policy decisions, Bailey plays the first question with a straight bat: "It is not for us to speculate on what will be in the Budget."

We're currently hearing from Andrew Bailey, who is delivering a news conference at the Bank of England.

He says the Bank's forecasts suggest inflation "will fall to close to 3% early next year, and then decline towards the 2% target after that".

As a reminder, inflation peaked at more than 11% in 2022. It briefly returned to the 2% target last year before rising for much of 2025, partly driven by food and energy costs.

Michael Race
Business and economics reporter, at the Bank of England

"We expect this to be the peak," Bailey says on inflation.

But he says risks remain, and the Bank needs to see more evidence inflation is falling before further cuts follow.

You can follow the governor's news conference live at the top of the page.

Michael Race
Business and economics reporter, at the Bank of England

Now I am out of the stuffy basement of the Bank of England, I'll be heading across to a nice press conference room to hear more from the Bank's policymakers - including Governor Andrew Bailey.

It's due to start at 12:30 GMT. Stay tuned.

In the statement published alongside its interest rate decision, the Bank of England says "inflation is judged to have peaked". This will come as good news to households.

As a reminder, inflation held at 3.8% in September.

Remember: This doesn't mean prices have stopped rising - they are just rising at the same rate as before.

At December's meeting, will Bank's governor play Santa or Scrooge?published at 12:10 GMT

12:10 GMT

Dharshini David
Deputy economics editor, at the Bank of England

Image source, Reuters

There is a buzz outside the Bank of England. City workers are taking advantage of unusually mild weather to enjoy lunch outside – there has been a shift in temperature too inside the Bank.

The rate decision was made by the narrowest of margins, and the interest rate panel believes that inflation has peaked.

The Bank’s governor, Andrew Bailey, said he wanted to see if forthcoming developments confirmed this view before cutting rates, weakness in the labour market could also play a part.

While the Bank itself refused to speculate about the contents of this Budget – it noted signs that concerns elsewhere, among consumers and businesses, may be holding back the economy.

With consumer spending remaining cautious, it now expects the economy to grow by less next year (1.2%) than the 1.5% it expects this year - that won’t be welcomed in Treasury.

The interest rate panel will have plenty to evaluate in the Budget – the scale and shape of tax rises, help with energy bills and possibly other cost of living challenges, and increases in the National Living Wage.

The next meeting is in mid-December. By, in effect, holding the casting vote, it’s the governor who may find himself deliberating whether to play Santa – or Scrooge.

With the Budget looming, the Bank is taking gradual approachpublished at 12:06 GMT

12:06 GMT

Michael Race
Business and economics reporter, at the Bank of England

Lots to digest (besides the biscuits) after that lock-in. But, in short, the Bank has narrowly decided to keep interest rates unchanged.

It was a knife-edge vote, with five in favour of keeping rates at 4% and four in favour of reducing them to 3.75%.

The majority have deemed it is best to wait and see how things pan out over the coming months, and particularly after the government's Budget before deciding any future rate cuts.

"Gradual" is the buzz word which has been used for months now, and there appears to be no change in that.

The Bank is confident that inflation, which is the rate consumer prices rise at, has peaked at 3.8% - but that is still a long way above its 2% target.

So, it's no change for now, but there could be an early Christmas present for borrowers if the Bank decides to cut rates at its next meeting on 18 December.

Lucy Hooker
Business reporter

Often there's fierce disagreement amongst the nine members of the Monetary Policy Committee (MPC) over whether it's the right time for a change in rates.

This time four members voted for a cut and five voted against.

No change, no surprisepublished at 12:01 GMT

12:01 GMTBreaking

Lucy Hooker
Business reporter

A hold was what most observers were expecting.

It means the main rate underpinning the cost of borrowing stays the same for at least another few weeks.

But it does make a rate cut in December more likely.

Policymakers at the Bank of England have just announced their decision.

Interest rates are held at 4%.

We'll bring you more on what this all means shortly. Stay with us.

In just five minutes' time, the Bank of England will announce its latest decision on interest rates.

Most analysts are expecting the rate to hold at 4%, but all will be revealed at midday.

Stick with us for the announcement and analysis from our Money and Work team on what this means for you.

Michael Race
Business and economics reporter, at the Bank of England

Interest rates are the Bank's main tool in try to maintain the annual rate of inflation at - or close to - its target of 2%.

The Bank’s base interest rate heavily influences the rates set by high street banks and lenders. The higher level in recent years has meant people are paying more to borrow money for things like mortgages and credit cards, but savers have also received better returns.

About 600,000 homeowners have a mortgage that tracks the Bank’s rate, so rates being cut will have an impact on monthly repayments.

More than eight in 10 customers have fixed-rate deals, but could continue to face higher repayment costs when renewing.

The theory behind increasing interest rates to tackle inflation is that by making borrowing more expensive, more people will cut back on spending and that leads to demand for goods falling and price rises easing.

But it is a balancing act as high interest rates can harm the economy as businesses hold off on investing in production and jobs.

Michael Race
Business and economics reporter, at the Bank of England

Depending on your individual circumstances, interest rates can impact you in different ways.

Mortgage holders with variable or tracker mortgages, or those who are looking to secure new fixed-rate deals, will face a change in their monthly repayments if rates are altered.

If rates are higher, it becomes harder generally for first-time buyers, as it becomes more expensive to borrow money for a mortgage.

Higher rates tend to mean increased charges for unsecured loans and credit cards, but people with savings should benefit from higher interest rates and get better returns on their money.

Lower rates, while making it cheaper to borrow, mean banks tend to offer lower returns on savings.

Higher rates could also be good news for those on the cusp of retirement, who might get a better annuity rate.

This determines how much guaranteed income you get, when you swap some or all of your pension pot for a secure income.

For the government though, higher interest rates in recent times have meant it has had to pay more interest on the country's debt.

The cost of government borrowing has been in the spotlight in recent months, with speculation that Chancellor Rachel Reeves could raise taxes in the Budget on 26 November.