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Six of the nine members of the Monetary Policy Committee voted to keep rates on hold while three wanted a quarter-point hike — a clear signal to the markets that rate cuts are not on the agenda yet.

That was backed up by bank Gov. Andrew Bailey, who said in a statement that interest rate policy would likely have to remain “restrictive for an extended period of time."

The Bank of England has managed to get inflation down from a four-decade high of over 11% — but there’s still a ways to go for it to get back to the bank's 2% target.

Inflation, as measured by the consumer price index, to October, clearly still too high for comfort.

“We’ve come a long way this year .... but there is still some way to go," Bailey said.

The bank's decision to hold rates follows two years of hikes that targeted a surge in inflation, first stoked by supply chain issues during the coronavirus pandemic and then Russia’s invasion of Ukraine, which pushed up .

While the interest rate increases have helped in the battle against inflation, the squeeze on consumer spending, primarily through , has weighed on growth in the British economy. There are growing worries that rates will stay high for too long, unnecessarily damaging the economy.

“With inflation trending downwards and the economy at risk of recession, the case for interest rate cuts is likely to grow over the coming months," said Suren Thiru, economics director at the Institute of Chartered Accountants in England and Wales.

The U.S. Fed already has signaled that it expects to make three interest rate cuts next year after it kept rates on hold Wednesday. The , which sets policy for the 20 European Union countries that use the euro currency, is also expected to hold rates Thursday.

However soon the Bank of England decides to cut rates, it's very likely that high borrowing rates and low economic growth will be the backdrop for the in next year's general election. That's hardly ideal for a party way behind in opinion polls against the main opposition Labour Party.