Bank of England expected to cut interest rates despite sticky inflation

Economists and industry experts think that a weakening economy will force the MPC to stick to its cutting schedule in spite of inflation running above its target.

Summary

  • The Monetary Policy Committee (MPC) announces its latest interest rates decision on Thursday 7 August at midday
  • Most experts expect the MPC to cut interest rates to 4%
  • Inflation spiked to 3.6% in June, well ahead of the Bank of England’s 2% target
  • Weakness in the UK economy means markets expect the MPC to stick to its rate-cutting schedule
  • In June, the MPC voted 6-3 in favour of holding rates unchanged, as opposed to a 25 basis point cut
  • ING believes there could be a three-way split in tomorrow's announcement
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That concludes today's coverage, but we'll be back tomorrow morning with more on what an interest rate cut could mean for your money. We'll also bring live updates and reaction following the MPC's announcement.

When will the MPC announce its interest rate decision?

How did the MPC vote at its last meeting?

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MPC member

June 2025 meeting interest rate vote

Andrew Bailey

4.25%

Sarah Breeden

4.25%

Swati Dhingra

4.00%

Megan Greene

4.25%

Clare Lombardelli

4.25%

Catherine L Mann

4.25%

Huw Pill

4.25%

Dave Ramsden

4.00%

Alan Taylor

4.00%

UK's weakening economy makes an interest rate cut more likely

Why the inflation outlook could be key to MPC’s base rate decision

Inflation: the background to the MPC’s interest rates decision

The MPC’s interest rate cut cadence

Good afternoon, and welcome to our live coverage of the upcoming interest rates decision.