Bank of England opens door to December rate cut as it signals inflation has peaked

Policymakers keep borrowing costs at 4% before crucial budget while also warning of persistent weak growth

• Analysis: Bank of England's decision to keep interest rates at 4% is not all doom and gloom

The Bank of England has opened the door to a December interest rate cut after signalling that inflation had peaked, as it kept borrowing costs unchanged before Rachel Reeves's make-or-break budget.

With less than three weeks before the chancellor's tax and spending statement, the Bank's monetary policy committee (MPC) voted by a narrow five-four majority to keep borrowing costs unchanged for a second consecutive meeting.