Bank of England’s interest rate pause raises hopes peak has been reached

Relief for mortgage holders after 14 consecutive rises as UK economy comes under growing pressure

• Judging by state of economy, Bank is done with rate hikes

Mortgage holders have been offered relief after the Bank of England kept interest rates on hold for the first time in almost two years, raising the prospect that a peak in borrowing costs has been reached in the battle against inflation.

In a knife-edge decision as the economy comes under growing pressure, the Bank's monetary policy committee (MPC) voted by a narrow majority to hold its key interest rate at 5.25% - already the highest level since the 2008 financial crisis.