Bank of England keeps main UK interest rate unchanged at 15-year high of 5.25 per cent

The Bank of England has kept its main interest rate unchanged at the 15-year high of 5.25 per cent, as inflation across the UK is expected to fall further over the coming months.

In a statement on Thursday, the bank's nine-member Monetary Policy Committee indicated that inflation, as measured by the consumer price index, is set to fall toward a 2 per cent target rate over the coming year. In the year to September, inflation stood at 6.7 per cent.

Most economists expect a sizable decline over coming months as domestic energy bills fall.

The bank in September ended a nearly two-year run of interest rate rises.