Interest rates warning that Bank of England reduction will be held back yet again | Personal Finance | Finance [Video]

UK interest rates are set to remain higher for longer following news out of America overnight.

The Federal Reserve has signalled that US borrowing costs are unlikely to fall soon against the background of fears around inflation.

The news suggests the Bank of England will take the same approach with some members of its Monetary Policy Committee (MPC) also concerned about persistent inflation.

Both the Fed in the US and the Bank of England are working towards an inflation target of two percent.

In America, the Federal Open Market Committee said after its meeting on Wednesday that there had been “a lack of further progress” towards its two percent inflation goal in recent months.

The Fed chairman Jay Powell said: “It is likely to take longer for us to gain confidence that we are on a sustainable path down to two percent inflation.

He added: “I don’t know how long it will …