The Bank of England's Monetary Policy Committee voted five to four to reduce Bank Rate by 25 basis points to 4.25%, effective immediately, at its May 2025 meeting. Members' views ranged from a call for a larger reduction to an argument for no change.
The Bank of England forecast UK GDP growth of 1% in 2025. The committee judged that trade developments would push down slightly on UK inflation while reducing activity.
THE VOTE
The 5–4 vote covered three policy positions. MPC members Swati Dhingra and Alan Taylor voted for a 50 basis point reduction. Catherine Mann and Huw Pill voted to hold Bank Rate at 4.50%.
GUIDANCE
The committee retained its 'gradual and careful' easing language, and no explicit guidance was provided on the timing or scale of subsequent moves.