Bank of England Rate Held but Hints at Future Cuts

The Monetary Policy Committee (MPC) has voted by a majority of 6-3 to keep the Bank Rate at 4.25%.  However, is has been hinted that further interest rate cuts could follow as soon as August.

With inflation remaining at its highest level for more than a year, and above the Bank’s target rate, the committee decided not to cut the rate this month.

Governor Andrew Bailey said that rates “remain on a gradual downward path”, but also warned: “The world is highly unpredictable.”

The meeting summary says “Disinflationary progress had continued, but there was not a strong case for a further easing of monetary policy at this meeting. Inflation seemed likely to stay around 3½% over the second half of 2025 before falling back towards the target from next year. There had generally been some greater signs of disinflationary pressures from the labour market, both in terms of quantities and wages, than from developments in domestic prices. Recent global developments had not had a significant impact on this meeting’s policy decision.”

The next meeting will be on 7th August 2025.

You can read all of the MPC Summary here.

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