Current Bank of England Interest Rates, Monetary Policy Committee Meeting Dates, Latest Outlook, Historic Rates, Predictions, and Forecasts
Understanding the Bank of England’s base rate puts you in a better position to make informed decisions and maximise the potential of your property investment strategy.
At Henry Dannell, we provide support, education, and solutions. This interest rate guide has been produced to answer your questions about mortgage rates, historic trends, and what to expect from recent MPC decisions.
Bank of England’s Current Interest Rate
What is the Current Mortgage Rate?
Today’s Base Rate at a Glance
The current Bank of England base rate remains at 4.25% (updated: 19/06/25), following a 0.25% cut in May and a hold during June 2025’s interest rate decision. While not yet a confirmed trend, this early shift signals a turning point in monetary policy, one that offers growing opportunity for buyers, refinancers, and property investors alike.
It’s a move reminiscent of 2009, when a series of swift cuts helped unlock momentum in the market. As confidence begins to return and costs gradually ease, the coming months could present timely windows for strategic financing decisions.
When Was England’s Base Rate Last Changed?
The base rate was last changed on 8th May 2025, during a Monetary Policy Committee announcement, which saw a 0.25% cut from 4.5%.
Why Did It Change?
During the meeting on 8th May, the majority of the MPC agreed to a 0.25 percentage point reduction for the new rate. Five members voted in favour of a 0.25% reduction, two other members voted for a larger cut of 0.5%.
MPC’s June 2025 vote resulted in the base rate being held at 4.25% in response to evolving economic decisions, focusing efforts on stimulating growth amid uncertainties, presented by living costs and global trade policies. By dropping interest rates, the MPC can ease pressure, stimulate cautious optimism, and provide greater lending opportunities.
The MPC is responsible for keeping inflation close to the government’s target of 2%, which must be within a full percentage point to meet expectations.
Monetary Policy Committee (MPC) Updates
Upcoming MPC Meeting Dates
- Thursday 7 August 2025
- Thursday 18 September 2025
- Thursday 6 November 2025
- Thursday 18 December 2025
(Subject to change)
When is the Bank of England’s next interest rate decision?
The next interest rate review is scheduled for 7th August 2025. The nine members of the MPC will again vote on whether the base rate should be adjusted in light of new economic data. With inflation edging closer to target but wage growth remaining firm, markets are currently split on whether the next move will bring another cut or a continued hold.
How often does the Bank of England meet?
Reviews occur (roughly) once every six weeks, with BoE typically meeting eight times per year. Each meeting involves reviewing economic data, inflation trends, and financial indicators that shape rate changes or other monetary policy measures.
What time are announcements made?
Decisions usually conclude by 12:00 pm UK time. On the same day, the MPC will announce the new rate and minutes.
Past Decisions and Voting Patterns
Taking a long-term view of interest rates over the last 50 years, we observe that the UK economy has consistently changed. Factors such as shifts in government, financial crashes, global pandemics, and general cost-of-living crises have all impacted interest rates, either pushing them up or bringing them down.
Previous MPC Meetings
2025
19 June 2025
08 May 2025
06 February 2025
Historic Interest Rates
Highest and Lowest Rates on Record
During the Thatcher government, interest rates reached a staggering 17%, a significant increase from 5.5% in 1977.
From the end of 1978, when rates had already risen to 12.5%, they gradually climbed to the highest interest rate of 17% in 1979. From then on, rates slowly and steadily decreased with some natural fluctuations until 2007. The average interest rate from 1975 to 2025 was 8.97%, with the lowest ever interest rate at 0.10% in March 2020, which saw a large cut due to COVID-19’s impact on the UK economy.
Timeline of Interest Rates (Last 50 Years)
Source: Bank of England, 2025
Mortgage Rates in England
Tracker vs Fixed vs Variable Mortgages
There may be a noticeable impact from base rate changes on mortgage rates, depending on the type of mortgage you select. Here is a quick comparison table to demonstrate the differences between mortgage types.
Interest Rate Predictions and Outlooks
Are Bank Rates Expected to Rise or Fall?
Key Economic Indicators to Watch
When trying to predict interest rate changes set by the Bank of England, there are a few key economic factors to watch. These include;
- Inflation (CPI Index)
- Employment and Wage Growth
- GDP Growth
- Sterling Exchange Rate
- Housing News
What Do Changes in Mortgage Rates Mean for You
Mortgage Holders
Mortgage holders will be affected in different ways. Your current deal may improve, or it may be time to review options.
Tracker rate mortgage holders’ payments will move in parallel.
Discounted variable rate holders will notice shifts in rates; however, these will often take longer to be reflected in real-time payments.
Fixed-rate mortgage holders are protected, but should plan for when their deal ends.
A homeowner soon to remortgage should review rate changes and identify potential savings, looking to secure new deals early.
Finding the news of the latest base rate changes confusing?
Interest rates are turbulent. Seeking advice from a trusted mortgage advisor during any changes to base rates can put you in the best possible position to maximise opportunities that await you. Speak to Henry Dannell’s team for an understanding about whole-of-market lenders, their offering, and your new position in the latest UK economy.
Please note: This article is intended for informational purposes only and does not constitute financial advice. The information contained herein is based on market conditions and opinions at the time of publication and is subject to change without notice. This article may contain references to or summaries of market research reports or analyses prepared by external providers. Henry Dannell does not endorse or adopt the views expressed in any such third-party reports. We recommend that you review the original research reports before making any decisions based on their content. Please also note: a mortgage is secured against your home or property. Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
