The Bank of England has kept its policy interest rate constant at 5.25% on Thursday, in line with market expectations.
The bank had been increasing the rate from 0.1% to 5.25% between November 2021 and August 2023, and it has been keeping the rate at 5.25% during the last five monetary policy meetings.
The bank said the Monetary Policy Committee (MPC) has set the policy to meet the inflation target of 2%.
The annual inflation rate in the UK dropped to 3.4% in February, down from 4% in January, hitting the lowest level since September 2021.
"Since the MPC's previous meeting, market-implied paths for advanced economy policy rates have shifted up," the bank noted.
It added that in the United States and the euro area, inflationary pressures have continued to abate, though less than expected.
"Material risks remain, notably from developments in the Middle East, including disruption to shipping through the Red Sea."
