Bank of England Member Suggests Persistent Hold on Interest Rates

Bank of England Monetary Policy Committee Member, Catherine Mann has suggested a persitent hold on interest rates at 4% pa for the time being.  She suggested this will then be followed by faster rate cuts later this year.

Inflation has been high since the pandemic and only started to fall in August 2024, followed by a further 4 rate cuts in the coming year.

More recently, inflation has been stubborn and has started to climb again, currently at 3.8% pa and forceast to increase to 4.0% pa in September 2025.

When inflation starts to fall again, interest rates will no doubt be able to also be cut.

Comment

We have already started to see banks and building socities adjust their stance where  rates where mortgage rates were being cut but have now started to increase again with the average mortgage rate now above 5% pa (Moneyfacts).

We now expect a hold on Bank of England interest rates again until November with a rate cut then and perhaps another in January 2026.