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UK Interest Rates

  • Bank of England to ‘tolerate slow return’ to inflation target as interest rates held

    Economics

    The Bank of England has said it will tolerate a delay in getting inflation back to its two per cent target as it held interest rates at 3.75 per cent in a split Monetary Policy Committee (MPC) decision.  Bank officials said they were closely monitoring the outcome of a peace deal being struck between the [...]

    Bank of England Governor Andrew Bailey said cited several indicators that the labour market was softening.
  • As it happened: Stocks sink after Fed and Bank of England opt for hawkish hold; Oil price tumbles

    Markets

    Welcome back to the City AM liveblog. Interest rates were left unchanged at 3.75 per cent in Bank of England’s monetary policy committee meeting today as rate-setters wait to find out whether the Iran war peace deal holds up.  The Bank’s decision followed Thursday’s inflation data, which stayed below undershot expectations after coming at 2.8 [...]

    Bank of England building on Threadneedle Street, London, showcasing its historic architecture and financial significance
  • Interest rates next change ‘far more likely down than up’

    Economics

    Interest rates are set to be held on Thursday in what some analysts believe could be a split decision as two Bank of England officials could back a 25 basis point hike.  The Bank’s Monetary Policy Committee is widely expected to leave interest rates unchanged at 3.75 per cent, though some members could back a [...]

    The Bank of England's Andrew Bailey will be closely monitoring movements in long-dated bonds
  • Bank of England should hold interest rates, City AM Shadow MPC says

    June 16, 2026

    The Bank of England should hold interest rates as inflation could stay above three per cent for several months, top economists have said. City AM’s Shadow Monetary Policy Committee, a group of leading economists who have provided responses independently of their respective organisations, said interest rates should be kept at 3.75 per cent.  Economists warned [...]

  • Interest rates set to be held as inflation to remain ‘elevated’ despite Iran peace deal

    June 15, 2026

    Interest rates are expected to be left unchanged as Bank of England policymakers wait to find out whether the Iran war peace deal holds up.  The Bank’s Monetary Policy Committee (MPC) is set to keep interest rates at 3.75 per cent at a decision later this week. Its decision would suggest that the Bank is [...]

  • Monzo’s profit rockets as customer base grows by a quarter

    May 19, 2026

    UK fintech darling Monzo posted a mammoth profit jump in the last financial year as its customer base swelled. The neobank’s pre-tax profit came in at £87.3m, 44 per cent higher than the £60m scored in 2024. The increase came as revenue stormed 40 per cent higher to £1.7bn. Monzo’s total users ballooned 25 per [...]

  • FTSE 100 banks are facing £2.5bn of headwinds – HSBC and Barclays are in the firing line

    May 6, 2026

    The FTSE 100’s Big Five banks toasted a healthy profit stash in the first-quarter, but, says Samuel Norman, storm clouds are gathering on the horizon for the sector. The London market’s five biggest banks swallowed a bitter cocktail of economic risks in the first three months of the year leaving a bumper cash haul overshadowed [...]

  • Bank of England Live: Interest rates held as hawks warn of ‘highly uncertain’ energy prices

    April 30, 2026

    Welcome back to the City AM liveblog. The Bank of England’s Monetary Policy Committee has today decided to hold interest rates at 3.75 per cent in a hawkish display. In last month’s decision, the Bank held rates in a unanimous decision. Afterwards, short-term gilt yields, which reflect government borrowing costs, sharply rose as traders priced [...]

  • Twilight zone: Markets await ‘highly uncertain’ interest rates decision

    April 30, 2026

    City analysts are eagerly anticipating a “highly uncertain” Bank of England decision on interest rates that could swing prices in either direction.  The Bank’s Monetary Policy Committee is widely expected to hold interest rates at its upcoming decision at 12pm on Thursday, though analysts have warned that a vote split and hawkish messaging around the [...]

  • ‘Stuff of nightmares’: Hold interest rates, City AM Shadow MPC says

    April 28, 2026

    Interest rates should be left unchanged in April but the future path of monetary policy could be unclear, City AM’s Shadow Monetary Policy Committee has suggested.  A group of City economists and academics has called for interest rates to be left at 3.75 per cent on Thursday, citing the risk of higher inflation due to [...]

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