Was the Bank of England wrong not to cut interest rates?

The Bank of England has held interest rates at 5 per cent. This was the expected outcome of the Monetary Policy Committee’s latest meeting, which saw members vote 8-1 to maintain the base rate. 

Was it a mistake not to cut rates? The latest economic data appears to have persuaded the MPC to lean into their (now) hawkish tendencies and keep rates steady. The headline inflation rate is almost on target but the rise in core inflation in August (which excludes more volatile prices like food and energy) and in services inflation – as well as mixed signals from the labour market – gave the Bank good reasons to wait until later in the Autumn to cut rates.

‘The need to squeeze persistent inflationary pressures out of the system,’ is the reason the Bank gives for pausing in its minutes today, as it assesses the medium-term prospects of getting inflation back to target ‘on a lasting basis’, and prepares for inflation to gradually climb to 2.5