Bank of England cuts interest rates to 4.5%: full updates and analysis

The Bank of England voted to reduce the base rate by 25 basis points at the first MPC meeting of the year on 6 February. Full coverage as it happened from the team at MoneyWeek.

Summary

  • The Bank of England cut interest rates at the first Monetary Policy Committee (MPC) meeting of the year, bringing the base rate from 4.75% to 4.5%.
  • All nine members of the MPC voted to cut the base rate. Seven members voted to cut by 25 basis points, while two members voted for a larger cut of 50 basis points.
  • The move was widely expected. Economists polled by Reuters unanimously said they expected the base rate to fall by 25 basis points.
  • It came after December’s inflation reading (published in January) was lower than expected.
  • The annual inflation rate slowed from 2.6% to 2.5%, surprising analysts who had expected the headline figure to hold steady or inch up slightly to 2.7%.
Refresh

It's almost interest rates day

MPC voting split: an overwhelming majority?

Can we expect quarterly rate cuts in 2025?

Slowly does it: BoE likely to maintain a cautious tone

Quick recap: when did the base rate peak?

What would a base rate cut mean for your personal finances?

What would a lower base rate mean for your mortgage?

Mortgage rates: avoid the standard variable rate

Savings rates usually tumble in tandem with the base rate

Are annuities an attractive option for retirees?

Longer term, Trump’s tariffs could actually speed rate cuts up

What do falling interest rates mean for investors?

NI changes: a headwind for UK equity investors?

UK funds are still seeing significant outflows, despite an improving rates environment

What’s next for inflation?

Energy prices could add to inflationary pressure

That concludes our interest rates coverage for today. We will be back tomorrow, ahead of the Bank of England's decision at midday. Thank you for joining us.

Good Thursday morning, and welcome back to our interest rates blog. This is Katie Williams and Daniel Hilton reporting live. There's less than two and a half hours to go until the Bank of England announces its next interest rates decision – and a cut is looking very likely. We will be sharing analysis in the lead-up and aftermath. Stick with us.

FTSE 100 hits another record high

An economist’s bogeyman: what is stagflation?

Labour's “number one mission” to boost growth

Fixed mortgage rates have risen, despite base rate cuts

Pound weakens against the dollar in anticipation of rate cut

What's happening in the savings market?

Capital Economics: Inflation could rise to 3% this year

BREAKING: BoE cuts interest rates

MPC voted decisively in favour of the cut

MPC: "Substantial progress on disinflation"

Reeves welcomes rate cut but "dissatisfied" with growth

MPC will be monitoring tariffs "closely"

Markets pricing in two or three more rate cuts this year

Which MPC members voted for a larger rate cut?

Reeves's plan for growth

Bailey: Economy is not in a state of stagflation

GDP growth will remain weak until 2027, says BoE governor

Bailey: Path of disinflation remains in place

Downgrade to growth forecast is "not a judgement on the Budget"

Having covered the latest interest rates news, let's turn our attention back to your personal finances. What does today's decision mean for you?

Consumers should remain cautious

Rate cut was already baked into the savings market

Rate cut could offer a welcome boost to the housing market

What a rate cut means for pensioners

Currency tailwinds could send the FTSE 100 higher

Other things to look out for this month

That concludes our live coverage on interest rates. Thank you for joining us today! There are still seven meetings to go this year, which we will be covering in detail over the months to come. Check out our calendar of upcoming MPC meeting dates.