The Bank of England has decided to hold the Base Rate at five percent for the second consecutive month, with a majority vote of 8-1.

The move will exacerbate the financial strain on homeowners, who are already grappling with mortgage payments that have increased by hundreds of pounds.

Andrew Bailey, governor of the Bank of England, said on Thursday: "Inflationary pressures have continued to ease since we cut interest rates in August. The economy has been evolving broadly as we expected. If that continues, we should be able to reduce rates gradually over time.

"But it's vital that inflation stays low, so we need to be careful not to cut too fast or by too much."

After inflation remained at the Government-set target of two percent for consecutive months, the MPC cut interest rates from 5.25 percent to five percent on August 1, the first rate reduction in four years.

However, the downward trend has since reversed, with inflation rising to 2.2 percent in July and remaining unchanged in August, according to the Office for National Statistics.

The Consumer Price Index (CPI) is a key metric for MPC decisions, and its stubborn month-on-month inflation rate left analysts widely expecting this result.

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