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Bank of England Set to Keep UK Rates on Hold at 4%

The Bank of England's Monetary Policy Committee is split on whether to cut interest rates amid falling food inflation and steady CPI at 3.8%, with some experts favoring a 25 basis points cut.

  • On Thursday, the Bank of England's Monetary Policy Committee will decide interest rates, with UK rates widely expected to be kept at 4%.
  • Official figures show CPI at 3.8% in September as food inflation fell back, running half a percentage point below official forecasts.
  • Most economists say the nine-person committee will be split as the Bank is visibly divided on how problematic inflation really is.
  • Some experts predict a rate cut to 3.75% as banking giants Barclays and Goldman Sachs see recent data signaling a need to reduce borrowing costs, and Jack Meaning said it could tip policymakers on Thursday.
  • The Bank is waiting on the Budget on November 26 before acting, and many economists expect borrowing costs to hold as inflation cools, with James Smith saying inflation has almost certainly peaked.
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UK interest rates set to stay at 4%, but policymakers ‘deeply divided’

Most economists agree that there will be divisions among the nine-person committee when it comes to this week’s vote.

·London, United Kingdom
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fxopen.com broke the news in on Wednesday, November 5, 2025.
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