BoE keeps rates steady at 4% as economy shows signs of slowing

Published on 06/11/2025 - 13:42 GMT+1

The Bank of England (BoE) held its cardinal liking complaint astatine 4% connected Thursday, chiefly successful statement pinch expectations, arsenic nan cardinal slope navigates a backdrop of stubborn ostentation and sluggish growth.

Commenting connected nan last decision, policymakers said nan existent economical conditions did not warrant a change.

However, nan determination was a adjacent call, arsenic 4 retired of 9 monetary argumentation committee members voted for a 25-basis-point cut. Governor Andrew Bailey had nan casting vote.

_"_It is possibly nary astonishment he has taken a much cautious approach, peculiarly fixed nan UK continues to suffer from higher ostentation compared to peers," said Lindsay James, finance strategist astatine Quilter.

Governor of nan Bank of England Andrew Bailey said successful a statement: "Rather than cutting Bank Rate now, I would for illustration to hold and spot if nan durability successful disinflation is confirmed successful upcoming economical developments this year."

UK user value maturation was 3.8% successful September, still good supra nan Bank of England’s 2% target. The BoE nevertheless said connected Thursday that ostentation had peaked and that advancement connected underlying disinflation was continuing.

At nan aforesaid time, figures connected wages and employment constituent to a softening labour market. Analysts opportunity nan operation of slower ostentation and weaker jobs information has accrued expectations that liking rates could beryllium trim successful nan coming months.

The Bank besides highlighted imaginable challenges from world uncertainties and upcoming fiscal tightening, suggesting immoderate move connected rates would beryllium cautious.

According to Quilter's James, nan BoE determination comes arsenic a rustle to nan UK Chancellor Rachel Reeves, who is expected to outline taxation rises successful her fund connected 26 November.

"With a caller group of taxation hikes incoming, nan Chancellor would person liked to person been successful a position wherever rates were beneath 4%," James said. The authorities will want to stimulate nan economy, she added, but will person to equilibrium this pinch ambitions for fiscal restraint.

In ray of challenges facing nan British economy, analysts expect much complaint cuts connected nan array successful nan coming months.