The Bank of England paused its historic interest rate hiking campaign for the first time in nearly two years Thursday after inflation fell unexpectedly in August.

Odds of an increase in UK interest rates on Thursday fall below 50%, after inflation rate dropped unexpectedly in August to an 18-month low

UK stocks gained on Wednesday after data showing a surprise fall in inflation in August boosted speculation the Bank of England (BoE) was nearing the end of its interest rate hiking cycle.

Inflation in Britain fell unexpectedly in August to its lowest level since the start of Russia’s invasion of Ukraine

LONDON (AP) — Homeowners across the U.K. are hoping that the Bank of England will decide to avoid raising interest rates Thursday for the first time in nearly two years, a decision that would come on the heels of similar action by the U.S. Federal Reserve.

It was the first time since December 2021 that the BoE did not increase borrowing costs. Governor Andrew Bailey sought to stress the central bank did not think its job was done.

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