When is the next Bank of England base rate meeting?

The Bank of England meets several times a year to set the base rate, a mechanism that influences interest rates on everything from mortgages to savings accounts.

For more than 18 months from December 2021, the Bank was in a cycle of hiking interest rates in a bid to combat inflation. The Consumer Prices Index (CPI) rose to a record high after Covid-19 restrictions loosened and Russia invaded Ukraine.

After peaking at 11.1% in October 2022, inflation has been slowing and recently returned to the Bank of England’s target. Headline inflation came in at 2% in May and held steady at this level in June. 

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All eyes are now on the MPC and when it will start cutting interest rates – but hopes of a summer cut could be delayed thanks to persistent services inflation and wage growth. 

We look at when the MPC is next due to meet, and where interest rates are heading.

Bank of England Monetary Policy Committee meeting dates

The Bank of England’s Monetary Policy Committee meets eight times a year to set the base rate. This takes place roughly every six weeks. The meetings usually happen the day before the interest rate announcement.

The first, second, third and fourth interest rate announcements of the year took place on 1 February, 21 March, 9 May and 20 June. The remaining four meetings will take place on the following dates: 

• 1 August 
• 19 September 
• 7 November
• 19 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 your 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

The prospect of an August rate cut rests on a knife edge, according to most experts. Hawkish comments emerged from the Bank of England earlier this month, when chief economist Huw Pill warned about the persistence of some inflation indicators. 

While he described CPI’s return to 2% as “welcome news”, he suggested that services inflation and wage growth remain higher than the Bank of England would like. “Recent developments in these indicators have hinted towards some upside risk to my assessment of inflation persistence,” he said. 

Services inflation remained high in June’s inflation report, coming in at 5.7%. This marked no slowdown compared to May’s reading. The services sector accounts for around 80% of the UK economy, so this could cause the Bank of England to tread a cautious path ahead.

“Services inflation had been predicted to fall this month and its failure to do so could well leave [the MPC] wary of making any early reductions in UK rates,” says Steve Clayton, head of equity funds at Hargreaves Lansdown. 

He adds: “Traders had been pricing in a 43% chance of a cut in August; that is now likely to be pushed further back, suggesting good news for savers, but more pain for mortgage holders who may have to wait longer to see their monthly payments start to ease.”