Breaking: Bank of England Holds Interest Rate at 4.25%, Signals Divided MPC

Breaking: Bank of England Holds Interest Rate at 4.25%, Signals Divided MPC

Published: June 19, 2025 | 🖋️ Tredu Central Bank Desk

BoE Leaves Benchmark Rate Unchanged

The Bank of England (BoE) has kept its main policy rate steady at 4.25%, as expected by most analysts and market participants. This marks another hold as the central bank gauges the impact of geopolitical risks and sticky inflation on the UK economy.

MPC Vote Shows Dovish Tilt

While the rate decision aligned with consensus, the vote breakdown within the Monetary Policy Committee (MPC) revealed a notable divide:

• Three members — Swati Dhingra, Dave Ramsden, and Catherine Mann — voted for a 25bps rate cut.

This internal split hints at growing momentum toward easing as economic uncertainty and geopolitical tension continue to cloud the outlook.

Market Implications

• Sterling (GBP) could face pressure due to increased expectations of rate cuts ahead.
• UK government bond yields may dip as dovish sentiment builds within the BoE.

Explore More on Tredu:

• Live GBP/USD Chart
• MPC Member Tracker
• UK Inflation and Economic Data