Bank Rate trimmed to 4%

tiemadmin • 7 August 2025

The Bank of England has knocked the main interest rate down to 4% today, cutting it by a quarter‑point from 4.25%. It’s the fifth cut in a year and brings the rate to its lowest since March 2023.

The decision was a close call: the nine‑member Monetary Policy Committee split 5‑4, requiring an unusual second round of voting to reach agreement. Bank governor Andrew Bailey cautioned that future cuts will have to be gradual and careful, especially given expectations that inflation may still hit 4% by September.

This cut offers relief to homeowners with tracker‑rate mortgages, reducing monthly repayments, but savers are likely to see lower returns on easy‑access accounts.

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