Bank of England Base Rate now 4.5%

At the Monetary Policy Committee (MPC) meeting ending on the 5th February 2025, the members voted by a majority of 7–2 to reduce Bank Rate by 0.25 percentage points, to 4.5%. Two members preferred to reduce Bank Rate by 0.5 percentage points, to 4.25%. Currently CPI inflation is at 2.5%.

Official UK Interest Rate Graph 2025.
(https://bankofengland.co.uk/boeapps/database/Bank-Rate.asp)

In support of returning inflation sustainably to the 2% target, the Committee judges that there has been sufficient progress on disinflation in domestic prices and wages to reduce Bank Rate to 4.5% at this latest meeting.

The Committee will continue to monitor the risks of inflation persistence and 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 results of the next scheduled MPC meeting will be announced on the 20th of March 2025.

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