When will UK interest rates fall further? Latest Bank of England predictions

There are signs of weakening in the labour market, but is June too early for another interest rate cut?

Bank of England with flowers in foreground
(Image credit: Dynasoar via Getty Images)

Interest rates are on a downward path, but next week’s Monetary Policy Committee (MPC) meeting looks too early for another cut from the Bank of England. Although the labour market is showing signs of weakening, with wage growth slowing and the unemployment rate picking up, inflation still looks strong at 3.5% (April report).

The Office for National Statistics (ONS) recently published a statement saying April's inflation reading would have been 3.4% rather than 3.5%, were it not for a data blunder from the Department for Transport involving road tax. The figure was not revised, in line with ONS policy. Despite this, a significant slowdown is not expected when May’s report is published on 18 June, the day before the next interest rate announcement.

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Katie Williams
Staff Writer

Katie has a background in investment writing and is interested in everything to do with personal finance, politics, and investing. She enjoys translating complex topics into easy-to-understand stories to help people make the most of their money.

Katie believes investing shouldn’t be complicated, and that demystifying it can help normal people improve their lives.

Before joining the MoneyWeek team, Katie worked as an investment writer at Invesco, a global asset management firm. She joined the company as a graduate in 2019. While there, she wrote about the global economy, bond markets, alternative investments and UK equities.

Katie loves writing and studied English at the University of Cambridge. Outside of work, she enjoys going to the theatre, reading novels, travelling and trying new restaurants with friends.