London

The Bank of England and the US Federal Reserve have halted interest rate increases following a drop in UK inflation, which has eased concerns about price rises. The central bank kept its main interest rate at a 15-year high of 5.25%, easing the burden on homeowners facing higher mortgage rates after nearly two years of hikes. This comes as central banks worldwide appear to be nearing the end of an aggressive rate-hiking cycle to curb inflation triggered by the COVID-19 pandemic and Russia’s war in Ukraine. Inflation fell to 6.7% in August, its lowest level since Russia invaded Ukraine in February 2022.