UK interest rates held at 4.25%

The Bank of England voted to hold interest rates at their current level by a 6-3 majority at its June meeting

Summary

  • The Bank of England voted to hold rates at their current level of 4.25% today, mirroring the decision made by the US Federal Reserve yesterday.
  • The decision was expected. Markets and economists had all but ruled out a cut, as mixed signals in the global economy meant a wait-and-see approach looked more likely.
  • The Bank has stuck to a quarterly pace of cuts so far. The last reduction came last month in May.
  • Inflation remains high, with the headline figure coming in at 3.4% in May's report, published yesterday.
  • The conflict between Israel and Iran has also pushed oil prices up in recent days, which could put upward pressure on energy prices and inflation going forward.
Refresh

Good afternoon and welcome to our live report. The Bank of England will announce its next interest rate decision at midday tomorrow.

Inflation still coming in hot

“Gradual and careful” approach to interest rate cuts

Pace of rate cuts “now shrouded in a lot more uncertainty”

How many further rate cuts this year?

“A smorgasbord of mixed messages”

What does it all mean for Rachel Reeves?

Would an interest rate “hold” be good news for savers?

What about prospective homeowners shopping for a mortgage?

Across the pond: will the Fed cut US rates today?

How do oil prices impact interest rates?

Can we expect further tariff turmoil next month?

That concludes our preview analysis for today, but we will be back with more live coverage in the lead-up to the Bank of England’s midday announcement tomorrow. Join us then.

Good morning and welcome back to our live report. The Bank of England will announce its interest rate decision at midday. To recap, here is what is expected:

Fed decides to hold – despite pressure from Trump

Markets likely to be nonplussed by BoE decision

“Sticky inflation” could impact mortgage rates

Interest rate decision due at midday

BREAKING: Bank of England holds rates

The Monetary Policy Committee is still divided

"Gradual and careful" message remains

MPC took note of weaker labour market conditions

"Global uncertainty remains elevated"

Impact of Trump's tariffs is "evident"

"The surprise? A third dissenter"

"It's not all dovish"

What does today's decision mean for your personal finances?

Annuity rates remain attractive

1.6 million mortgages due to expire in 2025

Poll: tell us your thoughts

Shop around for an inflation-busting savings account

What is stagflation – and are we heading for it?

Thank you for joining us – and upcoming MPC dates