UK Interest Rates Predicted to Stay at 4.25 with Bank ‘Nimble’ Amid Uncertainty
- The committee responsible for setting monetary policy in the UK will reveal its latest decision on borrowing costs on Thursday, 19 June 2025, in London.
- The decision follows recent inflation data showing CPI inflation at 3.5% in April, up from 2.6% in March, amid easing wage growth and rising unemployment.
- Since last August, the MPC has gradually lowered borrowing costs through several reductions, bringing the peak rate down from 5.25% to the current level of 4.25%, all while navigating persistent inflation and global economic uncertainties.
- Economists Ellie Henderson and Rob Wood emphasize a cautious approach, stating that one month's data is insufficient to change the MPC's gradual policy and that a nimble central bank response is required.
- Most economists expect the MPC to keep rates at 4.25% for now, with further rate cuts contingent on economic data amid tensions including tariffs and Middle East unrest.
14 Articles
14 Articles
Interest rates set to be held at 4.25 per cent - what it means for mortgages
The Bank of England will hold interest rates at 4.25 per cent on Thursday, economists predict, which could mean higher mortgage rates for longer. Almost all major economic forecasters say the Bank will not cut rates, but could do so at its next meeting in August.Inflation sitting well above 3 per cent – something that is expected to continue when the latest figures are released on Wednesday – is one key factor behind economists’ predictions.Anot…
Capital.com's BOE preview: Rates on hold as markets eye CPI and forward guidance - Wealth DFM
The Bank of England’s Monetary Policy Committee (MPC) is set to announce its next interest rate decision on Thursday, 19 June 2025. The current Bank Rate stands at 4.25%, following a 25 basis point cut in May. Interest Rate Outlook Market consensus strongly favours no change at this meeting, with implied pricing assigning a 90% probability that the Bank Rate remains at 4.25%. This expectation is underpinned by ongoing inflationary pressures, des…
BOE preview: rates steady as markets eye CPI & forward guidance - IFA Magazine
Written by Daniela Sabin Hathorn, senior market analyst at Capital.com The Bank of England’s Monetary Policy Committee (MPC) is set to announce its next interest rate decision on Thursday, 19 June 2025. The current Bank Rate stands at 4.25%, following a 25 basis point cut in May. Interest Rate Outlook Market consensus strongly favours no change at this meeting, with implied pricing assigning a 90% probability that the Bank Rate remains at 4.25%.…
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