The Bank of England’s Monetary Policy Committee (MPC) has held the base rate steady at 4.25% following its latest review last Thursday.
This move wasn’t unexpected. Inflation for May currently stands at 3.4%—slightly down from April but still relatively high after earlier progress this year. The MPC expects inflation to hover around this level through the rest of 2025, before gradually easing back toward the 2% target next year.
They also raised concerns about a cooling labour market and ongoing global uncertainty—especially with the recent rise in tensions in the Middle East.
💼 What This Means for Your Business
• Borrowing costs are unchanged for now, but there's a chance we’ll see rate cuts later this year. Some lenders may even adjust early in anticipation.
• Savings returns stay the same, so it’s a good time to check whether any cash reserves you’re holding are working hard enough.
• Inflation is still a challenge, meaning costs could stay high for the rest of the year. A cautious approach to financial planning might be wise
The Bank of England continues to tread carefully on interest rates.
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