Next Bank of England Interest Rate Decision
The upcoming BoE interest rate decision is scheduled for Thursday, June 19, 2025, at 12:00 PM BST.
The Monetary Policy Committee (MPC) meets eight times a year to assess economic conditions and set the base rate accordingly.
Current Bank of England Base Rate: 4.25%
On May 8, 2025, the BoE reduced the base rate by 0.25 percentage points to 4.25%. The decision was influenced by concerns over global trade disruptions and their potential impact on UK economic growth. The MPC vote was split: five members supported the 0.25% cut, two advocated for a larger 0.5% reduction, and two preferred to maintain the rate at 4.5%.
2025 MPC Meeting Schedule
- Thursday, June 19, 2025
- Thursday, August 7, 2025
- Thursday, September 18, 2025
- Thursday, November 6, 2025
- Thursday, December 18, 2025
Each meeting concludes with an announcement at 12:00 PM BST, detailing any changes to interest rates and the economic outlook.
Outlook for Interest Rates in 2025
While the recent rate cut aims to bolster the economy, the BoE remains cautious. Governor Andrew Bailey emphasised a “gradual and careful” approach to future rate changes, considering both domestic inflation trends and global economic uncertainties .
Analysts anticipate further rate reductions if inflation continues to decline and economic growth remains subdued.However, the split vote in the MPC indicates differing views on the pace and extent of future cuts.
Recent BoE Base Rate Changes
| Date | Interest Rate (%) |
|---|---|
| May 8, 2025 | 4.25 |
| March 20, 2025 | 4.50 |
| February 6, 2025 | 4.50 |
| November 7, 2024 | 4.75 |
| August 1, 2024 | 5.00 |
| August 3, 2023 | 5.25 |
Why Interest Rates Matter
Interest rates influence various aspects of the economy:
- Borrowing Costs: Lower rates reduce the cost of loans and mortgages, encouraging spending and investment.
- Savings Returns: Interest earned on savings accounts typically decreases with rate cuts.
- Currency Value: Interest rates can affect the exchange rate of the pound, impacting imports and exports.
- Inflation Control: Adjusting rates helps the BoE manage inflation, aiming for a target of 2%.
Understanding these dynamics can help individuals and businesses make informed financial decisions.