The Monetary Policy Committee (MPC) voted to maintain the Bank Rate at 4.5% during its meeting on 19 March 2025, with one member preferring a slight reduction to 4.25%. This decision follows significant progress in reducing inflation, although challenges remain with global uncertainties and domestic inflation pressures.
Despite a stronger-than-expected UK GDP growth, business surveys indicate continued weakness, particularly in employment. Inflation rose to 3.0% in January, driven by domestic price pressures, while global energy prices remain higher than last year. CPI inflation is expected to rise to around 3¾% in Q3 2025, before falling back.
The MPC continues to take a cautious approach, carefully adjusting monetary policy to balance inflation control with economic growth. Future decisions will depend on the evolving supply and demand dynamics in the economy.
Click here to read more: https://www.bankofengland.co.uk/-/media/boe/files/monetary-policy-summary-and-minutes/2025/monetary-policy-summary-and-minutes-march-2025.pdf
