In its August 2025 Monetary Policy Report, the Bank of England announced a further cut in interest rates to 4% as inflation, which had peaked above 11% in 2022, remains volatile amid food and energy price pressures.
CPI inflation rose to 3.5% in Q2, but policymakers expect it to dip toward the 2% target as global trade tensions ease and recent trade agreements provide stability.
The Bank acknowledged uncertainty stemming from external developments, including US tariffs and shifting commodity costs, which have complicated forecasts.
Pay growth, after a period of strength, has begun to moderate and unemployment has ticked up, reflecting cautious consumer sentiment and slower business investment.
The decision aims to support growth while ensuring inflation is kept in check, aligning monetary conditions with current fiscal risks and helping preserve household purchasing power.
Economic analysts say the move could encourage more investment and spending but warn against complacency if inflation resumes its upward trend later in the year.
A new survey by the Confederation of British Industry (CBI) revealed that confidence in the UK's services sector has dropped due to persistent cost pressures and weak demand.
The latest data from UK Finance shows a rise in mortgage arrears and possessions in the second quarter of 2025, although lenders continue to offer support to struggling homeowners.
UK inflation has unexpectedly accelerated to 3.8% in July, primarily driven by rising food, fuel, and airfare costs.
UK inflation has unexpectedly accelerated to 3.8% in July, primarily driven by rising food, fuel, and airfare costs.
Annuity rates for pensions have climbed to their highest levels in years, making now a potentially opportune time for retirees to purchase a guaranteed income stream.
Rate cuts by more than 20 banks following the BoE move risk pushing savings returns below inflation.
Economists said the Q2 GDP surprise reduces pressure for rapid follow-up cuts after August’s split decision.
UK economy grew 0.3% in Q2 2025, beating expectations amid tariff and jobs headwinds.
The pound strengthened this week as traders priced Fed easing and reassessed BoE cuts after resilient UK growth.
UK stocks hit new highs as investors shake off trade worries; inflation and unemployment rise.
The Bank of England reduced rates by 25bp to 4.0%, with a closely divided MPC underscoring policy uncertainty.
The Bank of England's Monetary Policy Committee voted to cut the base rate by 0.25 percentage points to 4.0%, marking the fifth consecutive cut in a year.
New data shows the UK's services sector experienced its largest drop in new orders in almost three years, adding to the pressure on the Bank of England to cut interest rates.
Business leader optimism in the UK economy has fallen to its lowest level since records began in 2016.
The British Pound is experiencing its weakest month against major currencies in nearly two years.
The Bank of England has launched a consultation on extending the operating hours for its Real-Time Gross Settlement (RTGS) service and CHAPS.
Londoners are purchasing the lowest proportion of houses outside the capital in over a decade due to stalling local prices and the shift back to office working.
FTSE 100 property developer Berkeley Group has warned of a housing slowdown in London, forecasting further decline unless the government addresses regulatory and tax hurdles.
Amazon offers 45% discount on L'Oreal Paris Laser Renew Anti-Ageing Triple Action Eye Cream.
UK borrowing costs for 30-year debt reached 5.72%, a 27-year high, raising fears of economic decline.
Poundland plans to close up to 68 stores in 2025 following financial difficulties and restructuring.
Chancellor Rachel Reeves announced the autumn budget for November 26, aiming to address a £30 billion deficit with growth measures.
Financial expert Martin Lewis has issued a strong warning against criminals who use his name and deepfake technology in 'disgraceful' online adverts to scam vulnerable people, after a woman's husband lost thousands of pounds.
The Powerball jackpot has soared to an estimated $1.3 billion, the fifth-largest in the lottery's history, after no winning ticket was sold in the latest drawing, marking the 41st consecutive drawing without a winner.
The UK's long-term borrowing costs have reached a 27-year high, fueling speculation about the government's economic credibility and the future of Chancellor Rachel Reeves following a significant government reshuffle.
Experts caution that Premium Bonds winnings may lead to unexpected tax bills depending on how they’re used.
McVitie’s introduces a new caramel-flavoured Penguin biscuit available in major UK supermarkets just in time for autumn.
Despite a wider trend of decreasing car insurance premiums in the UK, a new report indicates that prices for drivers under the age of 25 have seen a recent increase.
A major government reshuffle has fueled speculation about the future of Chancellor Rachel Reeves as the UK's long-term borrowing costs reach a 27-year high amidst broader European economic uncertainty.
The Powerball jackpot has skyrocketed to an estimated $1.3 billion after no one won the top prize in the latest drawing, marking the 41st consecutive drawing without a winner and setting up the fifth-largest jackpot in the lottery's history.
