For the first time since November 2021, the Bank of England has voted to leave borrowing costs unchanged.
Interest rates were held at 5.25% a day after inflation fell by more than expected, dropping to 6.7% in August.
It was a close decision, with four of the nine-member Monetary Policy Committee (MPC) voting for a further increase and five opting for a freeze.
The MPC has raised rates in 14 successive meetings in an effort to bring down high inflation.
“Inflation has fallen a lot in recent months, and we think it will continue to do so,” said Bank of England governor Andrew Bailey.
Interest rates remain at their highest level for 15 years and homeowners looking for a new mortgage deal will still see a significant increase in rates compared with two or five years ago.
However, analysts said there is now a greater chance that mortgage rates have peaked. As a result, lenders may have more confidence to offer better deals.
