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# Bank of England holds Bank Rate at 4.00% in 7–2 vote as inflation heads for 4% peak
- URL: https://www.theglobalbanker.com/bank-of-england-holds-bank-rate-at-4-00-percent-in-7-2-vote-as-inflation-heads-for-4-percent/
- Published: 2025-09-18T18:23:00.000Z
- Updated: 2026-10-02T14:10:40.000Z
- Description: The Monetary Policy Committee kept Bank Rate at 4% with two members favouring a cut, and slowed the pace of gilt stock reduction to £70bn over the next year.
- Author: TGB Editorial Team
- Tags: Central Banks, Europe, #archive

The Bank of England's Monetary Policy Committee voted by 7–2 on 18 September 2025 to hold Bank Rate at 4.00%. Governor Andrew Bailey, Sarah Breeden, Megan Greene, Clare Lombardelli, Catherine L Mann, Huw Pill and Dave Ramsden voted to maintain the rate, while Swati Dhingra and Alan Taylor preferred a reduction of 0.25 percentage points to 3.75%.

The decision leaves Bank Rate 125 basis points below the 5.25% level at which the easing cycle began in August 2024, following five quarter-point cuts, the most recent in August 2025.

#### INFLATION OUTLOOK

Twelve-month CPI inflation was 3.8% in August. The Committee expected inflation to rise slightly in September, to a temporary peak of 4.0%, before falling back towards the 2% target, and said upside risks to medium-term inflationary pressures remained prominent.

The MPC said a gradual and careful approach to the further withdrawal of monetary policy restraint remained appropriate. It added that monetary policy was not on a pre-set path and that the Committee would remain responsive to the accumulation of evidence.

#### QUANTITATIVE TIGHTENING SLOWED

At the same meeting, the Committee voted 7–2 to reduce the stock of UK government bonds held for monetary policy purposes by £70 billion over the next 12 months, bringing the total to £488 billion. The previous annual reduction had been £100 billion. Two members dissented on the size of the reduction.

The MPC's next decision is due on 6 November 2025, when the minutes of its meeting ending on 5 November will be published.