The Bank of England meets eight times a year to set the base rate, a mechanism that influences interest rates on everything from mortgages to savings accounts.
The Bank’s next rate decision will be announced on 8 May.
The Monetary Policy Committee (MPC) held interest rates at 4.5% at its last meeting, but analysts think there is a high chance of a rate cut this time around.
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The decision to cut rates could be driven in part by growth concerns, after US president Donald Trump announced a series of wide-ranging tariffs in April.
Robert Wood, chief UK economist at Pantheon Macroeconomics, calls the rate cut a “shoo-in”, after inflation and wage growth were also weaker than expected in the latest reports.
“We expect seven MPC members to vote for a 25bp reduction and two – Swati Dhingra and Catherine Mann – to go for 50bp,” he said.
Bank of England Monetary Policy Committee meeting dates
The Bank of England’s Monetary Policy Committee meets roughly every six weeks to set the base rate. The meetings usually happen the day before the interest rate announcement.
Dates for upcoming interest rate announcements
- 8 May
- 19 June
- 7 August
- 18 September
- 6 November
- 18 December
What is the Bank of England’s Monetary Policy Committee?
The Bank of England’s Monetary Policy Committee is responsible for setting the base rate, also known as ‘Bank Rate’.
The base rate is the most important interest rate in the UK, as the interest you earn on your savings or that you repay on loans is influenced, set and adjusted based on this figure.
The committee is made up of nine members, chaired by governor of the Bank of England Andrew Bailey. Four of the committee members are external experts, “appointed to make sure that the MPC benefits from thinking and expertise from outside of the Bank of England”, the Bank explains.
During each meeting, the committee votes on the rate-setting decision.
Bank of England base rate forecast
Most analysts expect at least two more rate cuts from the Bank of England before the end of 2025, with the first of these coming this month.
“The turmoil Trump has unleashed on the world has increased the odds of a May interest rate cut dramatically,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
“Growth forecasts have been slashed for the UK, and policymakers look set to be ready with bandages to stop a further seeping away of activity. Lower borrowing costs may help increase business and consumer confidence and encourage more investment and spending,” she added.
Consultancy Capital Economics thinks rates will be trimmed by 25 basis points in May, followed by a further 25 basis-point cut in November. This would take the base rate to 4% by the end of the year.
Meanwhile, the economists at European bank ING think the Bank of England will cut rates three more times this year, bringing the base rate to 3.75%. They then expect 50 basis points of cuts in 2026, taking it to 3.25%.
Deutsche Bank has suggested we could see as many as four more rate cuts before the year is out.
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