Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Bank of England expected to hold interest rates at 4.5% amid inflation concerns

by March 20, 2025
March 20, 2025
Bank of England expected to hold interest rates at 4.5% amid inflation concerns

The Bank of England is set to maintain its base rate at 4.5% when its Monetary Policy Committee (MPC) announces its latest decision on Thursday, as policymakers weigh inflation risks against economic growth.

With inflation rising to 3% in January, analysts predict the Bank will take a cautious approach, despite market expectations of two further rate cuts by the end of 2025. The decision will have widespread implications for households, businesses, and investors, affecting everything from mortgage rates to borrowing costs.

The MPC, chaired by Bank of England governor Andrew Bailey, meets eight times a year to set interest rates with the aim of keeping inflation at the government’s 2% target. Its decisions significantly influence the cost of borrowing, including mortgages, business loans, and credit cards, while also impacting savings returns.

Although the Bank has already made three rate cuts since August 2024—bringing the base rate to its lowest level in 18 months—officials have warned of lingering inflationary pressures and global economic uncertainty.

“Bank of England policymakers have been warning on inflation and lingering uncertainty, so further rate cutting relief for homeowners looks to be an unlikely outcome from this month’s meeting,” said Paul Heywood, chief data and analytics officer at credit agency Equifax UK.

While mortgage rates have been slowly declining in anticipation of future cuts, the Bank has signalled a “gradual and careful” approach, meaning borrowers hoping for immediate relief may need to wait longer.

The Bank’s decision comes as Chancellor Rachel Reeves prepares to deliver her Spring Statement next week. While major policy changes are not expected, the statement will provide updated economic forecasts from the Office for Budget Responsibility, including key insights into government spending plans.

The UK economy continues to underperform, with the Bank halving its 2025 growth forecast to 0.75%, down from 1.5%. Inflation is also projected to rise to 3.7% before gradually easing towards the 2% target by 2027.

External factors, such as global trade policies and US tariffs, are further complicating the outlook, adding to uncertainty around future interest rate decisions.

For now, the Bank’s cautious stance signals stability in the short term, but businesses, homeowners, and investors will be closely watching for signs of further cuts as the year progresses.

Read more:
Bank of England expected to hold interest rates at 4.5% amid inflation concerns

0
FacebookTwitterGoogle +Pinterest
previous post
Amazon boycott could cost up to £47m in lost UK sales
next post
Trump vindicated as explosive report confirms Iran supervises Houthi ‘political and military affairs’

You may also like

Covid loans make UK taxpayers shareholders in cannabis...

August 5, 2022

UK house prices fall by £5,000 in August

August 15, 2022

UK and Ukraine launch talks on digital trade...

August 24, 2022

Musk and Starmer clash over ‘civil war’ claim...

August 6, 2024

Chancellor pledges 30 hours of childcare a week...

March 14, 2023

Cyber attacks on UK firms fall during the...

October 11, 2022

Britain will dodge recession in 2023, think tank...

February 8, 2023

Reform UK clashes with Bank of England over...

June 9, 2025

AviaGames Triumphs with Three Wins at the 2024...

December 13, 2024

Silicon Valley tech firm apologises for sexist stunt...

August 15, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • WATCH: Trump says he is hopeful Hillary Clinton will be investigated for election fraud

      August 1, 2025
    • Trump moves nuclear submarines weeks after praising sub’s power in Iran strikes

      August 1, 2025
    • Recess on ice as Republicans hunker down for high-stakes nominee blitz

      August 1, 2025
    • Iran says it has ‘plenty of scientists’ left to restart uranium enrichment, despite US, Israeli strikes

      August 1, 2025
    • No, Tariffs Are Not Similar to Consumption Taxes Like a VAT

      August 1, 2025
    • Trump repositions 2 nuclear submarines after ‘highly provocative’ Russian comments

      August 1, 2025

    Categories

    • Business (8,651)
    • Investing (2,168)
    • Politics (16,281)
    • Stocks (3,228)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved