07 Nov 2025
Ahead of the Autumn Budget on 26 November, the Bank of England has held interest rates at 4%.
The Bank's Monetary Policy Committee (MPC) voted five to four in favour of keeping rates at 4%. Inflation is currently 3.8%, almost double the target of 2% set by the Bank.
'We held interest rates at 4%,' said Andrew Bailey, Governor of the Bank of England.
'We still think rates are on a gradual path downwards, but we need to be sure that inflation is on track to return to our 2% target before we cut them again.'
Responding to the news, Chancellor Rachel Reeves said: 'At the Budget later this month I will take the fair choices that are necessary to build the strong foundations for our economy so we can continue to cut waiting lists, cut the national debt and cut the cost of living.'
Shadow Chancellor Mel Stride commented: 'The UK has the highest inflation in the G7 thanks to Rachel Reeves' Jobs Tax and reckless borrowing spree. And yet she is once again preparing to hike taxes, leaving us trapped in a doom-loop.'