YOU may have seen in the news that the Bank of England has once again decided to hold interest rates, keeping the base rate at 3.75 per cent.

This is the sixth time in a row the Bank has kept rates unchanged, and I wanted to take a moment to explain what it means for households and businesses across our part of Devon.

The decision was taken by the Bank's Monetary Policy Committee, which voted by six to three to hold rates steady. Three members wanted to see rates rise to 4 per cent.

The committee is trying to strike a difficult balance.

On one hand, inflation has crept back up to 3.1 per cent in August, well above the Bank's official target of 2 per cent.

On the other, raising the cost of borrowing too quickly risks putting further strain on families and firms already feeling the pinch.

Much of the recent pressure comes from energy prices. Conflict in the Middle East has pushed up the cost of crude and refined fuel, and that filters through to what we all pay at the pump and on our energy bills.

The Bank has warned that inflation could rise to around 3.75 per cent by the end of this year and slightly above 4 per cent in early 2027 if these pressures continue.

For anyone running a business in Crediton, Bovey Tracey or the surrounding villages, higher fuel and energy costs are a very real concern.

The immediate market reaction was notable. The pound fell close to 1.33 dollars, its weakest week since May, as the Bank chose not to follow other central banks around the world in raising rates.

At the same time, the Bank paused its programme of selling government bonds for six months, which helped bring down borrowing costs on the bond markets.

So what does this mean in practice? For those on tracker or variable rate mortgages, monthly payments will stay broadly where they are for now.

For savers, the better easy-access accounts are still paying around 4 per cent, so it is worth shopping around.

For many of us, the price of filling the car and heating the home remains the sharper day-to-day pressure.

The Bank's next decision is due on November 5. This meeting may see rates rise.

If any of these issues are affecting you or your business, please do get in touch through my office. I always want to hear directly from constituents about the pressures you are facing.

Facebook: Mel Stride MP X: @MelJStride Instagram: @melstridemp Website: www.melstridemp.com