Thu, 06 Nov 2025

Thu, 06 Nov 2025 Interest rates expected to be held as Budget looms

Most analysts believe the Bank rate will remain at 4% for now, although there could be a cut in December.

* Policymakers at the Bank of England are expected to hold interest rates at 4% on Thursday, with most analysts predicting a hold.
* Some experts have suggested that the latest inflation data could strengthen the case for a cut in interest rates, but most think this is more likely in December.
* The Bank's base rate has an impact on borrowing costs and savings returns, and the decision will be closely watched by lenders and savers.
* Analysts at Barclays and Goldman Sachs predict a split in the vote among the nine-member Monetary Policy Committee (MPC) and expect a cut to 3.75%.
* For the first time, individual views of each MPC member on interest rates will be published alongside the wider decision.
* The Bank's next meeting is in December, when further economic data may sway their thinking and potentially lead to a rate cut.
* Chancellor Rachel Reeves has said measures in the Budget "will be focused on getting inflation falling and creating the conditions for interest rate cuts".
* Savers could see returns fall if the Bank cuts the benchmark rate, with many already feeling demoralized by low returns and high inflation.
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