Answers · UK 2025/26
When will the Bank of England cut interest rates again?
As of May 2025, Bank Rate stands at 4.25%, with the Monetary Policy Committee (MPC) reviewing it 8 times a year. Markets price in further cuts to ~3.75-4.00% by end-2025, though decisions depend on inflation and growth data. We do not provide forecasts; check BoE for current guidance.
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The Bank of England Monetary Policy Committee (MPC) sets the official Bank Rate to meet the government's 2% inflation target. The MPC meets 8 times per year (every 6 weeks). Decisions are based on CPI inflation (still above target at ~2.6% in early 2025, expected to ease through 2025), wage growth, GDP, labour market data and global conditions. Recent path: peaked at 5.25% in 2023-2024, with the first cut to 5.00% in August 2024, then progressive cuts to 4.25% by May 2025. Forward market expectations price in further cuts during 2025, but the BoE has emphasised gradual, data-dependent moves. Each 0.25% cut typically reduces tracker mortgage payments by approximately £15/month per £100,000 mortgage. Fixed deals already reflect expected cuts — swap rates often move BEFORE the MPC decision. Schedule and minutes at bankofengland.co.uk. CalcHub.uk does not provide rate forecasts — consult an FCA-authorised adviser for decisions dependent on rate outlook.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.