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 next rate decision will be announced on 18 December. The Bank of England has been cutting interest rates since last summer at a rate of roughly once per quarter, and many analysts expect them to cut rates again in their final meeting of 2025.
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Bank of England meeting dates
The MPC meets roughly every six weeks to set the base rate. The meetings usually happen the day before the interest rate announcement.
There is just one meeting left this year, with the decision being announced on 18 December.
The Bank of England has confirmed when the MPC’s interest rate decisions will be announced next year:
- 5 February
- 19 March
- 30 April
- 18 June
- 30 July
- 17 September
- 5 November
- 17 December
What is the Bank of England’s Monetary Policy Committee?
What is the Bank of England’s Monetary Policy Committee?
The MPC 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 Andrew Bailey. Four of the committee members are external experts, appointed to make sure the MPC benefits from thinking and expertise from outside of the Bank of England.
During each meeting, the committee votes on whether to cut, hold or raise interest rates.
Bank of England base rate forecast
Some analysts now believe interest rates are more likely to be cut in the final MPC meeting of the year, as inflation came in lower than expected in September and is forecast to gradually fall closer to target through 2026.
The vote split in November’s base rate decision also indicated that a cut may be likely as four out of seven of the MPC’s members voted to cut rates by 25 basis points to 3.75%.
By the time the MPC meets in December, Rachel Reeves’s Autumn Budget will have been set out, with the central bank having had ample time to analyse the measures enacted and see how they will influence the inflationary outlook.
For instance, while incredibly politically unpopular, potential tax rises would likely act as a further disinflationary force in the economy.
Sanjay Raja, chief UK economist at Deutsche Bank, said: “We continue to think that the MPC will cut Bank Rate once more this year – taking Bank Rate to 3.75% by year-end.
“We also maintain that the Bank Rate will likely settle closer to 3.25% by summer next year. The big question now is whether there is enough dovish momentum in the data to back a faster reduction in Bank Rate over the first half of next year.”
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