Bank of England holds rate at 4.25% amid global uncertainty

19 Jun '25

1 min read

Bank of England holds rate at 4.25% amid global uncertainty

Pic: William Barton / Shutterstock.com

Insights

Bank of England's Monetary Policy Committee voted 6–3 to hold the Bank Rate at 4.25 per cent.
While inflation rose to 3.4 per cent in May, it is expected to decline next year.
The MPC cited weak UK growth, easing wage pressures, and elevated global risks as reasons for maintaining a cautious stance.
Policy will remain restrictive until inflation risks fall sustainably toward the 2 per cent target.

The Bank of England’s Monetary Policy Committee (MPC) voted 6–3 to maintain the Bank Rate at 4.25 per cent at its meeting ending June 18, 2025. While three members supported a 25 basis-point cut, the majority favoured keeping rates unchanged amid ongoing inflation risks and global uncertainty.

Inflation rose to 3.4 per cent in May from 2.6 per cent in March, driven by regulated and past energy price increases. Though inflation is expected to ease towards the 2 per cent target next year, there is a need for a cautious, data-dependent stance, maintaining a restrictive policy to curb lingering inflationary pressures, the MPC said in a statement.

The UK economy remains subdued, with signs of slack in the labour market and moderating wage growth. The MPC acknowledged this weakness but stressed that policy would remain tight until inflation risks are sufficiently contained. The Bank also flagged geopolitical volatility and energy price spikes as key concerns, underlining that monetary policy is not on a pre-set course.

Fibre2Fashion News Desk (KD)

More Textiles News - United Kingdom...