Bank of England holds interest rates at 4% and slows scheme to sell stock of UK bonds

Decision on government debt holdings could reduce market jitters and Treasury's borrowing costs

The Bank of England has left interest rates on hold at 4% and will slow the pace of its quantitative tightening" programme in the year ahead to avoid distorting jittery government bond markets.

The central bank's nine-member monetary policy committee voted 7-2 to leave borrowing costs unchanged, after five cuts since summer 2024, including a reduction last month.