Bank of England Holds Bank Rate at 4.25% in June 2025 Amid Renewed Inflation Concerns

The Bank of England's Monetary Policy Committee voted to hold Bank Rate at 4.25% at its June 2025 meeting, pausing the easing cycle that had been under way.

UK consumer prices rose to 3.5% on an annual basis in April 2025, up from 2.6% in March that the Bank attributed largely to a range of regulated prices and previous increases in energy prices.

MPC VOTE

The MPC said it would continue to monitor closely the risks of inflation persistence.

The 6–3 vote, with three members preferring a cut to 4%, was accompanied by a signal from the Bank that it would proceed carefully with any further reductions to Bank Rate.

POLICY PATH

UK CPI inflation was 3.5% in April and 3.4% in May.

The MPC said monetary policy was not on a pre-set path and that it would remain sensitive to heightened unpredictability in the economic and geopolitical environment.