Bank of England left the interest rates unchanged | November 2025

The Bank of England decided to maintain its benchmark interest rate at 4% during the November 2025 meeting. The MPC’s narrow 5–4 vote reflected growing confidence that inflation has peaked but highlighted caution amid slower economic growth and labour market slack.

author: Ahura Chalaki

203

published:Nov 21, 2025 2:0

category:fundamental

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Monetary Policy Summary — November 2025

At its meeting concluding on 5 November 2025, the Monetary Policy Committee (MPC) voted by a narrow majority of 5–4 to maintain the Bank Rate at 4%. Four members favored a 0.25-percentage-point reduction to 3.75%.

Inflation Outlook

Consumer Price Index (CPI) inflation is now judged to have peaked. The process of underlying disinflation continues, aided by the still-restrictive stance of monetary policy. This is evident in easing wage growth and softer services inflation. The disinflation trend is further supported by subdued economic activity and increasing slack in the labour market.

Policy Balance and Risks

Monetary policy is being calibrated to strike a sustainable balance around achieving the 2% inflation target. The risk of persistent inflation has diminished, while the risk of weaker demand posing downward pressure on inflation has become more apparent. As a result, the overall balance of risks is now more even—though further evidence is required on both sides.

Policy Outlook

The degree of monetary restrictiveness has lessened as the Bank Rate has been lowered. Any additional reductions will depend on how the inflation outlook evolves. If disinflation continues to make steady progress, the MPC anticipates that the Bank Rate will likely move gradually lower over time.