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

Most economists expect at least one more interest rate cut this year as the labour market slows, but could geopolitical tensions change the outlook?

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

The Bank of England held the base rate at 4.25% in June, continuing its “gradual and careful” approach to interest rate cuts. However, the Monetary Policy Committee (MPC) was more divided than expected, with Dave Ramsden joining Swati Dhingra and Alan Taylor in voting for a faster pace of monetary policy easing.

Ramsden seems to have been influenced by signs that the labour market is cooling. Although wage growth remains high, it slowed to 5.2% annually between February and April, down from 5.6% previously.

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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.