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5h ago

Bank of England Holds Rate at 4% After 5–4 Split, Keeping December Cut in Play

The knife‑edge decision signals a cautious tilt toward cuts pending clarity from the 26 November Budget.

Swiss National Bank (SNB) headquarters are seen in Zurich, Switzerland March 16, 2023. REUTERS/Denis Balibouse
The equestrian statue of the Duke of Wellington with The Bank of England building in the background, on the day of the Monetary Policy Report press conference, in London, Britain, November 6, 2025. REUTERS/Maja Smiejkowska
A general view of the Bank of England building in London, Britain, June 24, 2025. REUTERS/Carlos Jasso/File Photo

Overview

  • Four of nine MPC members voted to cut to 3.75%, highlighting an active internal debate over how quickly to ease policy.
  • Governor Andrew Bailey said rates remain on a gradual downward path but that clearer evidence of disinflation is needed before cutting.
  • The Bank judged inflation likely peaked at 3.8% and projects a further decline, with unemployment set to rise above 5% and growth remaining subdued.
  • Markets raised the odds of a December reduction, with analysts saying the Budget and incoming inflation and labour data will be decisive.
  • In a transparency shift, the Bank published individual MPC members’ views and gave more space to alternative scenarios in its forecast communication.