Bank of England Holds Bank Rate at 4.50% Amid Global Trade Uncertainty

The Bank of England's Monetary Policy Committee held Bank Rate at 4.50% on 20 March 2025. Policymakers reaffirmed a commitment to a gradual and careful withdrawal of monetary restriction.

The decision arrived at a moment when rising global trade uncertainty — linked to US tariff policy — was complicating the outlook for both growth and inflation across major economies. The MPC signalled that it would continue to weigh incoming economic data closely before making further adjustments.

MPC VOTE

Financial markets had expected Bank Rate to be held at this meeting. The minutes, published alongside the decision, showed an 8–1 vote, with Swati Dhingra preferring a 25 basis point cut to 4.25%.