Interest rates in the UK are expected to be cut to 4% in August, following previous cuts in February and May. This comes as the UK economy shows signs of weakness, with a slowing housing market and rising employment. Markets anticipate another rate cut in November, with a fourth cut expected by the end of the year. The Bank of England is likely to lower rates gradually to stimulate economic activity, despite inflation remaining above the 2% target. The MPC remains divided on interest rate decisions, with some members advocating for further cuts while others warn against cutting rates too quickly. Uncertainty looms over the terminal rate, as other central banks adjust their interest rates amid global economic challenges. With only three Bank of England meetings left in 2025, the future outlook for interest rates remains uncertain, with the MPC’s quarterly monetary policy report in November offering more insights into the Bank’s strategy for 2026 and beyond.

Read more at Morningstar: Will the Bank of England Cut Interest Rates Next Week?