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UK Interest Rates

  • Bank of England poised to slash interest rates 

    December 13, 2025

    The Bank of England is expected to cut interest rates by 25 basis points to their lowest level in nearly two years at a crunch decision next Thursday.  Markets and leading economists have priced in a cut to Bank Rate to 3.75 per cent amid fears activity in the UK economy is stalling and the [...]

  • Interest rates: Bank of England hawks to ‘look through’ Budget’s disinflation

    December 9, 2025

    Bank of England policymakers struck a hawkish tone on the future path of interest rates despite acknowledging that the upcoming Budget would lower inflation. Appearing before MPs on the Treasury Select Committee, Bank staff analysis agreed with the Office for Budget Responsibility (OBR) that measures in Rachel Reeves’ November statement would strip 0.5 percentage points [...]

  • Bank of England decision to cut interest rates could be ‘closer call’

    December 5, 2025

    The Bank of England’s expected decision to cut interest rates by 25 basis points could be a “closer call” than markets predict, analysts have said.  Markets have all but priced in interest rates falling to 3.75 per cent at the Bank’s next decision in mid-December after a flurry of data points pointed to a continued [...]

  • ‘Deceiving’ Budget: Reeves to delay debt ‘repair’ amid interest rate hold fears

    November 27, 2025

    A left-leaning think tank has sounded the alarm on the the delay of the “repair job” for public finances after Rachel Reeves increased short-term borrowing levels to pay for higher welfare spending next year. The Resolution Foundation, which was previously headed by Treasury minister Torsten Bell, suggested Rachel Reeves’ Budget was “deceiving” by back-loading consolidation [...]

  • Jobs market decline ‘fuels hopes’ for Bank of England interest rate cut 

    November 11, 2025

    The jump in the unemployment rate and softening private sector wage growth is driving up expectations of an interest rate cut at the Bank of England’s next meeting in mid-December.  The Office for National Statistics (ONS) said the unemployment rate had jumped to 5 per cent, higher than economists had expected, while wage growth had [...]

  • Bank of England holds interest rates at four per cent amid Budget fears

    November 6, 2025

    The Bank of England has held interest rates at four per cent amid caution around high inflation levels ahead of Chancellor Rachel Reeves’ crucial Budget in three weeks.  The Bank’s Monetary Policy Committee (MPC) voted 5-4 to hold interest rates as Governor Andrew Bailey, who made the deciding call at the latest meeting, said he [...]

  • Cut interest rates by 25 basis points, Shadow MPC says

    November 5, 2025

    Top economists on City AM’s Shadow Monetary Policy Committee (MPC) have called for interest rates to be cut to 3.75 per cent in a narrow 5-4 vote. Economists from academia, business and City giants have said that the UK’s weakening demand and easing price pressures suggested the Bank of England should look to cut interest [...]

  • Bank of England expected to hold interest rates in tight decision

    November 4, 2025

    The Bank of England is expected to hold interest rates at four per cent despite some City forecasters suggesting that the votes of the Monetary Policy Committee (MPC) could tilt towards a 25 basis point cut.  City traders believe the Bank will keep interest rates on hold to curb high inflation, which is nearly double [...]

  • Motor finance, Madoff fraud, tax fears – bank shares defy the noise

    October 31, 2025

    A motor finance battle, hefty impairment charges and the shadow of 2008 all cast over banks third-quarter results but beneath the fog investors are rewarding the FTSE 100’s top lenders for another bumper quarter. The FTSE 350 banks index has risen nearly four per cent this month and is up 17 per cent for the [...]

  • Interest rates could fall to three per cent – City AM Shadow MPC 

    September 18, 2025

    Interest rates could fall as low as three per cent, according to a group of economists in City AM‘s Shadow Monetary Policy Committee (MPC), but a rocky year for the UK economy could keep borrowing costs high.  The Bank of England voted to hold interest rates on Thursday at four per cent due to sticky [...]

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