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.
On 6 February, the Bank’s Monetary Policy Committee (MPC) voted to cut rates by 25 basis points to 4.5%. It followed similar reductions in August and November last year.
The Bank of England has suggested it will take a “gradual and careful” approach to reducing rates further over the course of the year.
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The Bank has said that inflation figures are a lot healthier now than at their last meeting, with evidence of further disinflation in the economy, allowing the MPC to cut rates.
The central bank is, however, expecting inflation to briefly rise to 3.7% in the third quarter of this year before falling back to the 2% target in 2026.
The MPC will meet seven more times this year. We share a list of dates for your calendar before delving into the interest rate outlook.
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.
Remaining MPC meeting dates in 2025
- 20 March
- 8 May
- 19 June
- 7 August
- 18 September
- 6 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 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
Markets are pricing in two or three more rate cuts in 2025, expecting the rate to fall to around 4% by the end of the year. Economists are slightly more bullish. For example, the consultancy Capital Economics expects the base rate to fall to 3.5% by early 2026.
This mirrors what the Organisation for Economic Cooperation and Development (OECD) said in its latest economic outlook. It is also forecasting a base rate of 3.5% in just over a year’s time.
Policymakers at the Bank of England will be keeping a close eye on the latest inflation statistics as they are published. In particular, services inflation has been an important area of focus. This is still high at 4.4%, but it is expected to fall in the spring when things like phone and internet bills come down.
Close attention will also be paid to what chancellor Rachel Reeves will do next – a Spring Statement is planned for the end of March but the Treasury has hitherto been quiet about what it might entail.
The employer National Insurance hike will kick in from April, as will the higher National Living Wage. There are concerns businesses could put their prices up to manage the effect of rising labour costs.
Energy prices could also put upward pressure on household budgets. The price cap increased by 1.2% last month. Energy consultancy Cornwall Insight, which is well-regarded for the accuracy of its forecasts, predicts that the price cap will increase by 2.7% for the period of April to June.
Other risks on the global stage include an escalation in the Middle East, and the threat of Donald Trump’s tariffs.
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