Bank of England hold interest rates at all-time 0.1% low

The Bank of England has decided to hold interest rates steady at 0.1%, even though it thinks inflation will hit 5% next year – way above target.

It had been widely predicted that rates would go up today – but Governor Andrew Bailey said that it would not help in the short term.

With inflation surging, the Bank is now forecasting two years of falling real incomes.