Bank of England holds Bank Rate at 4% in 5-4 vote

The Bank of England's Monetary Policy Committee (MPC) voted by a majority of 5-4 at its meeting ending on 5 November 2025 to maintain Bank Rate at 4%, the Bank announced on 6 November, with four members preferring a 0.25 percentage point reduction to 3.75%.

HOW MEMBERS VOTED

Governor Andrew Bailey, Megan Greene, Clare Lombardelli, Catherine L Mann and Huw Pill voted to hold Bank Rate. Sarah Breeden, Swati Dhingra, Dave Ramsden and Alan Taylor voted to cut.

The committee said that CPI inflation is judged to have peaked. According to the minutes, the rise in headline inflation over the year had been accounted for by base effects in energy prices and one-off factors, including supply disruptions in specific food components and increases in administered prices.

The MPC said progress on underlying disinflation continues, supported by the still restrictive stance of monetary policy and reflected in an easing of pay growth and services price inflation. It added that underlying disinflation is being underpinned by subdued economic growth and building slack in the labour market.

GUIDANCE ON THE PATH OF RATES

The committee said the risk from greater inflation persistence had become less pronounced recently, while the risk to medium-term inflation from weaker demand had become more apparent, so that overall the risks are now more balanced, although more evidence is needed on both.

With the restrictiveness of policy having fallen as Bank Rate has been reduced, the MPC said the extent of further reductions will depend on the evolution of the outlook for inflation. If progress on disinflation continues, Bank Rate is likely to continue on a gradual downward path.