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.
After cutting the base rate in August and November, the Monetary Policy Committee (MPC) voted to hold rates at 4.75% at the final meeting of the year in December.
The Bank of England has suggested it will take a gradual approach to reducing rates further in 2025 – and an uplift in inflation recently will do little to persuade it from this course.
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There are also concerns that measures announced in the Autumn Budget could keep inflation higher for longer.
Markets are currently pricing in two further rate cuts in 2025, although economists polled by Reuters in December are forecasting four and others are more bullish still.
Overall, the feeling is that rates will fall more slowly than previously expected, though.
The MPC will meet eight times in 2025. 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.
MPC meeting dates in 2025
- 6 February
- 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
Although markets are only pricing in two rate cuts in 2025, most economists are 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 will be keeping a close eye on each inflation release as it is published. In particular, services inflation has been an important area of focus. This is still high at 5%, but it is expected to fall in the spring when things like phone and interest bills come down (see more on this from the economists at ING).
Close attention will also be paid to measures announced in the Autumn Budget. 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 will rise by 1.2% from January. Consultancy Cornwall Insights expects the cap to rise by a further 1-2.5% in April thanks to “market turbulence and price cap reforms”.
Other risks on the global stage include an escalation in the Middle East, and the threat of tariffs from president-elect Donald Trump.
