LONDON, March 20 (Xinhua) -- The Bank of England (BoE) has kept its benchmark interest rate unchanged at 4.5 percent, Britain's central bank said in a statement on Thursday.

At its meeting concluding on Wednesday, the BoE's Monetary Policy Committee voted by a majority of eight to one to maintain the rate. One member preferred a reduction of 0.25 percentage point to 4.25 percent.

"There has been substantial progress on disinflation over the past two years, as previous external shocks have receded, and as the restrictive stance of monetary policy has curbed second-round effects and stabilised longer-term inflation expectations," the statement said.

The Bank highlighted that global trade policy uncertainty has intensified, noting that the United States has introduced multiple tariff announcements, triggering responses from other countries, while geopolitical uncertainties and financial market volatility have also increased globally.

The BoE pointed out that 12-month consumer price index (CPI) rose to 3 percent in January from 2.5 percent in December, moving further away from the Bank's 2 percent target.

The Bank now expects CPI to rise to around 3.75 percent in the third quarter of 2025, before declining thereafter.

According to the statement, the BoE projects GDP growth of around 0.25 percent in the first quarter, an increase from the 0.1 percent forecast in February. Enditem

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