Bank of England — Monetary Policy Committee

Decision (Sept 2025)

• Held Bank Rate at 4.00%.
• Vote: 7–2 in favour of holding; 2 wanted a 25 bps cut.
• Reduced gilt holdings by £70bn over 12 months (QT).

Inflation & Outlook

• CPI inflation 3.8% in August; expected to tick up in Sept then ease.
• Underlying disinflation continues, but food/services inflation sticky.
• Wage growth easing but remains elevated.
• Risks: inflation spikes, wage effects, inflation expectations.

Policy Tone

• Cautious, data-driven; inflation still too high to cut.
• Neutral to modestly hawkish stance; not yet easing.

Analyst / Market Views

• Markets expect no further cuts in 2025 unless inflation weakens sharply.
• Some see cuts pushed to 2026.
• QT plan calmed gilt market volatility.

Next Meeting

• Scheduled: 6 November 2025.
• Expectation: Hold; cuts depend on inflation/wages.