The Monetary Policy Committee (MPC) sets monetary policy to meet the 2% inflation target, and in a way that helps to sustain growth and employment. The MPC adopts a medium-term and forward-looking approach to determine the monetary stance required to achieve the inflation target sustainably. At its meeting ending on 6 August 2025, the MPC voted by a majority of 5–4 to reduce Bank Rate by 0.25 percentage points, to 4%, rather than maintaining it at 4.25%. There has been substantial disinflation over the past two and a half years, following previous external shocks, supported by the restrictive stance of monetary ... (full story)

The Bank of England cut interest rates from 4.25% to 4% on Thursday as the central bank resumes a “gradual and careful” approach to lowering interest rates. The BOE was widely expected to trim rates by 25 basis points at its latest monetary policy meeting, but traders and economists were keen to see the breakdown of support for the decision among the bank’s policymakers. As it turned out on Thursday, the nine-member MPC voted by a majority of 5–4 to reduce the key interest rate, the “Bank Rate,” by 25 basis points rather than keeping it on hold. Policy makers have had to weigh up sticky inflation — the consumer pr (full story)