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<h1>Bank of England keeps interest rate at 4% as inflation stays above target ahead of the upcoming budget.</h1> Bank of England maintained the policy rate at 4 per cent after a divided vote, citing consumer price inflation at 3.8 per cent-well above the 2 per cent inflation target-as the central reason to defer cuts. Policymakers stressed uncertainty ahead of the upcoming government budget and noted that likely tax increases intended to reduce inflation could affect economic activity and price dynamics, so the Committee will await clearer fiscal signals before moving rates downward.