The Monetary Policy Committee (MPC) sets monetary policy to meet the 2% inflation target, and in a way that helps to sustain growth and employment. The MPC adopts a medium-term and forward-looking approach to determine the monetary stance required to achieve the inflation target sustainably. At its meeting ending on 7 May 2025, the MPC voted by a majority of 5–4 to reduce Bank Rate by 0.25 percentage points, to 4.25%. Two members preferred to reduce Bank Rate by 0.5 percentage points, to 4%. Two members preferred to maintain Bank Rate at 4.5%. There has been substantial progress on disinflation over the past two ... (full story)

Millions of home owners and businesses today celebrated lower mortgage and interest bills after the Bank of England cut interest rates by a quarter point to 4.25%. The Bank’s rate setting Monetary Policy Committee (MPC) voted 5-4 to reduce the cost of borrowing for the fourth time in less than a year after similar moves in August, November and February. Interest rates are now at their lowest level since May 2023. Two members of the MPC voted for a bigger 0.5% cut while another two preferred keeping the rate at 4.5%. Today’s move, which was in line with City forecasts, will mean an immediate cut in monthly mortgage ... (full story)