URGENT: Bank of England holds rate steady at 4.25%

The Bank of England’s Monetary Policy Committee (MPC) decided on Wednesday to keep Bank Rate unchanged at 4.25 per cent following its meeting ended 18 June 2025, as it continues efforts to bring inflation back to the 2 per cent target while supporting economic stability.

Three members favoured a 25 basis point cut, citing weakening economic growth and moderating pay pressures.

Headline CPI inflation rose to 3.4 per cent in May, up from 2.6 per cent in March, mainly due to regulated and energy-related price increases. However, the MPC expects inflation to stay broadly stable for the rest of the year before easing back toward the target in 2026.

The Committee noted signs of economic slack, a loosening labour market, and declining wage growth but stressed that global uncertainty—particularly from heightened geopolitical tensions—remains a key risk.

Policymakers reiterated that monetary policy will stay restrictive for as long as needed and decisions will be made on a meeting-by-meeting basis, guided by incoming data and risks to inflation persistence.

Attribution: Amwal Al Ghad English

Subediting: Y.Yasser