Bank holds base interest rate at 4%

Thu 18 Sep 2025

The Bank of England has voted to maintain the base interest rate at 4%, despite some signs the housing market is slowing down.

Members of the Bank’s Monetary Policy Committee (MPC) and Governor Andrew Bailey (main picture) voted 7-2 for a hold.

PRICE GROWTH SLOWS

The Office for National Statistics released figures yesterday showing a 2.8% increase in house price growth in the year to July, down from 3.6% the previous month.

This decision to hold the rate is despite a stubborn inflation figure, which remained static at 3.8% yesterday, well above the Bank’s 2% target.

There will be another interest rate decision on the 6th November, before the Budget on 26 November.