Today, the Bank of England confirmed that interest rates were on hold at 4 per cent.

The governor, Andrew Bailey, said: “We held interest rates at 4% today. Although we expect inflation to return to our 2% target, we’re not out of the woods yet so any future cuts will need to be made gradually and carefully.”

At its meeting ending on 17 September 2025, the Monetary Policy Committee voted by a majority of 7–2 to maintain Bank Rate at 4%.

Two members voted to reduce Bank Rate by 0.25 percentage points, to 3.75%.

The Committee voted by a majority of 7–2 to reduce the stock of UK government bond purchases held for monetary policy purposes, and financed by the issuance of central bank reserves, by £70 billion over the next 12 months, to a total of £488 billion.

The decision has received a

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