Bank of England holds base rate at 4.25%

Written by Michael Griffiths

19/06/2025

The Bank of England (BoE) has confirmed it will hold interest rates at their current level of 4.25%.

It follows the 0.25% cut to the base rate last month, the fourth by the central bank since it started to bring interest rates down from a recent peak of 5.25% last August.

At its meeting this week, the nine members of the BoE’s Monetary Policy Committee (MPC) voted by a majority of six to three to maintain rates at 4.25%. Three members were in favour of another 0.25% cut, which would have taken the base rate down to 4%.

The BoE’s decision follows yesterday’s announcement by the Office for National Statistics (ONS) that the UK’s rate of consumer prices index (CPI) inflation had crept up to 3.4% in the year to May.

In the MPC’s report published today, it said the rise in inflation was largely due to “a range of regulated prices and previous increases in energy prices”. The MPC is predicting inflation to “remain broadly at current rates throughout the remainder of the year”, before falling back towards its 2% target next year.

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