Wed, 18 Jun 2025

Wed, 18 Jun 2025 Bank of England expected to hold interest rates at 4.25%

Analysts predict cuts to come later in the year, but say the Bank rate is likely to remain at 4.25% for now.

* The Bank of England's Monetary Policy Committee (MPC) is expected to keep interest rates on hold at 4.25% when it announces its decision later today.
* Analysts think further rate cuts will not arrive until later in the year, as inflation remains above target and the economy is sluggish.
* The MPC will consider several factors, including global tensions, which could push up oil prices and inflation, as well as the impact of US tariffs on trade.
* Many economists believe there will be two more interest rate cuts by the Bank this year, but some only expect one.
* A cut in rates would have an immediate impact on monthly mortgage repayments for around 600,000 homeowners with tracker mortgages.
* The average fixed mortgage rate is currently around 5.10-5.12%.
* Food prices are a major concern, with inflation at its highest level for over a year and food prices accounting for 23% of basic household spending.
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