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Bank of England Eyes Rate Cuts Amid Falling Inflation

6/25/2025

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Story summary
  • The Bank of England may lower interest rates to 4.25% on May 8, addressing growth and labor market concerns.
  • UK inflation decreased to 2.6% in March, allowing for potential rate cuts before inflation increases again.
  • Economists foresee at least two additional rate cuts by 2025, potentially easing mortgage rates for borrowers.
  • Average mortgage rates have fallen to 5.26% and 5.13%, down from over 6% in August 2023.