Bank of England Keeps Rates Steady at 4.25%
In a world that feels like a spinning roulette wheel, the Monetary Policy Committee (MPC) has decided to keep the UK’s interest rate locked in at 4.25%. They’re playing it cool, thinking a “gradual and careful approach” is the way to go.
Andrew Bailey Takes the Stage
Governor Andrew Bailey told reporters, “Interest rates are still on the slow slide, but we’re pausing for now.” He added that the global scene is “highly unpredictable,” which means no sudden moves for now. Bailey also flagged that the labour market is giving a little softer riff: wages are easing and hiring is taking a chill pill.
CEBR’s Take on the Forecast
Sam Miley, the Head of Forecasting at CEBR, echoed the MPC’s stance. He said, “We expected the base rate to stay at 4.25%. The UK’s still grappling with price pressures—food prices have popped, energy’s on the rise, and services inflation remains sticky. There are extra pushes coming from higher domestic labour costs and a bit of geopolitical tension.
Overall, he predicts the Bank will stay cautious and likely slice just one more rate cut this year, keeping tweaking things slowly.
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