The Bank of England has kept interest rates at 4% as predicted due to ongoing economic and political uncertainty. Inflation remains above target and is expected to rise further. While some experts anticipate rate cuts in 2026, markets do not foresee any rate cuts for the remainder of 2025, despite inflation hitting 3.8%. The Bank’s cautious approach may see only three rate cuts this year. Two more meetings are scheduled in 2025, with potential rate decisions in February and March 2026.

Read more at Morningstar: Bank of England Holds Interest Rates at 4%