Bank of England holds rates steady. Experts react
Updated:
6 NOV, 2025
By Joanna Piwko from RankiaPro Europe
The Bank of England (BoE) left its benchmark interest rate unchanged at 4%, contrary to some experts’ expectations.
Luke Bartholomew, Deputy Chief Economist at Aberdeen Investments
In recent weeks, rumors have increased that the Bank of England might cut interest rates today. However, the decision to keep them unchanged has always been more likely, and clearly, the vote has been very close. With inflation and wage growth moderating, and the likelihood that the budget will include tax increases, a rate cut in December is becoming increasingly probable. We believe that interest rates will continue to fall throughout next year.
Gordon Shannon, Portfolio Manager at TwentyFour Asset Management
While the slowing inflation outlook very much allowed for a cut, scarred from overpromising on its transitional nature in 2021 the Bank of England wants at least one month’s more data. The risk of slowing wage growth plateauing and elevated household inflation expectations highlighted key areas of concern. While the 5-4 hawk-dove split was narrower than expected, the bond market will wonder whether enough clarity can be gained on these questions for a December cut to be possible.
