Interest rates in the UK expected to be cut to 4% in August, with further cuts anticipated in November. Economic growth remains stagnant, with rising unemployment and a slowing housing market. Inflation above target at 3.6% in June. Uncertainty surrounds future rate cuts and the impact on the UK economy.

Bank of England’s monetary policy committee divided on interest rates, with some members advocating for lower rates. Markets predict a 25-basis-point cut in August, with potential for further cuts later in the year. Uncertainty over the “terminal rate” of interest rates in the UK economy. Other central banks making similar decisions on rates.

Upcoming Bank of England meetings in 2025 scheduled for August, September, November, and December. November meeting to include quarterly monetary policy report for 2025, indicating outlook for 2026. Markets closely watching for decisions on interest rates and their impact on the UK economy.

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