Bank of England keeps interest rates unchanged at 5.25%, moves closer to first rate cut since 2020

The Bank of England building is seen surrounded by flowers in London

The Bank of England has kept its main U.K. interest rate at a 16-year high of 5.25% with several policymakers still worrying about some key inflation measures.

In a statement Thursday, the bank's nine-member Monetary Policy Committee voted 7-2 to keep rates unchanged, with the 2 dissenters backing a quarter-point reduction. Last time, only one member voted for a quarter-point cut.

The increase in the number of those backing a rate reduction is a clear indication that cuts are on the cards.

Like the U.S. Federal Reserve last week, which also kept rates, on hold, the majority on the panel wanted to see more evidence that inflation is under control.

The Bank of England, like the U.S. Fed and other central banks around the world, raised interest rates aggressively in late 2021 from near zero to counter price rises first stoked by supply chain issues during the coronavirus pandemic and then by Russia's invasion of Ukraine.