Bank of England Holds Rates at 4% after Fed Cuts and ECB Holds

The Bank of England Monetary Policy Committee (MPC) has today, by a split vote of 5:4 confirmed it will hold UK interest rates at 4.0% pa.

This follows the Federal Reserve’s committee confirming last week to cut rates from 4.0%-4.25% to a range of 3.75%-4.0% pa and the European Central Bank holding rates at 2.0% pa for the third consecutive month.

This was a close vote and highlights the split in the committee on the need to reduce inflation and the need help consumers and businesses to stimulate the economy.

Comment

Given there is the Autumn Budget on 26^th November with more taxation expected and a possible economic slowdown as well as Rachel Reeve’s Pre-Budget Speech on Monday 4^th November stressing the need to reduce stubborn inflation to ‘kick start’ the economy, it is no wonder that the committee, by the narrowest majority, voted to hold rates.

• Next Inflation Figures: 19 November 2025.
• Next Bank of England Rate Decision: 18 December 2025. 
  • We do expect a rate cut then after the next inflation figures for October are published late this month.