Bank of England holds interest rates at 4.75%

Written by Michael Griffiths

19/12/2024

The Bank of England has confirmed it is holding its base rate at 4.75% in its final decision on interest rates in 2024.

It follows the central bank’s move to cut its base rate last month by 0.25%.

At its latest meeting, the Bank’s Monetary Policy Committee (MPC) voted by a majority of six to three to maintain the base rate at 4.75%. Three members were in favour of a further 0.25% reduction, which could have taken rates to 4.5%.

The announcement follows the Office for National Statistics (ONS) reporting this week that CPI inflation had hit 2.6% in the year to November, having crept up from from 2.3% in October, and 1.7% in September.

In the MPC’s report published today, the BoE said it was expecting headline inflation to “continue to rise slightly in the near term”, and that the Committee was continuing to consider “a range of cases” for how the past global shocks that drove up inflation may unwind.

It added: “The MPC is also monitoring the impact on growth and inflationary pressures from the measures announced in the Autumn Budget, and from geopolitical tensions and trade policy uncertainty. These developments have generated additional uncertainties around the economic outlook.”

The BoE’s next base rate announcement is due on 6 February 2025.

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