Bank of England Base Rate cut to 4.75%

On the 6th November, the Bank of England’s Monetary Policy Committee (MPC) voted to cut the base rate from 5% to 4.75%. The MPC vote was 8 members in favour of a cut, and 1 in favour of maintaining the rate at 5%.

CPI inflation fell to 1.7% in September, but is expected to increase to around 2.5% by the end of the year as weakness in energy prices is removed from the annual comparison.. 

Based on the evolving evidence, a gradual approach to removing policy restraint remains appropriate. Monetary policy will need to continue to remain restrictive for sufficiently long until the risks to inflation returning sustainably to the 2% target in the medium term have dissipated further. The Committee continues to monitor closely the risks of inflation persistence and will decide the appropriate degree of monetary policy restrictiveness at each meeting.

Official UK interest rate graph 2024.
(https://www.bankofengland.co.uk/boeapps/database/Bank-Rate.asp).

The results of the next scheduled MPC meeting will be announced on the 19th of December 2024.

This article isn’t personal advice. If you’re not sure whether a course of action is right for you, ask for financial advice.