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Bank of England Holds Rates Amid Inflation and Growth Concerns

9/17/2025

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Summary

Story summary

The Bank of England is likely to keep its interest rate at 4% on September 18, 2025, per a Reuters poll.
Economists anticipate a quarter-point cut in Q4 2025 and another early next year, though some doubt any cuts this year.
Inflation is expected to hit 4% in September, with a return to the 2% target projected for mid-2027.
The UK economy is forecasted to grow modestly at 0.2-0.4% quarterly through 2026.
The Bank plans to reduce its bond holdings by £50-100 billion over the next year, while rising gilt yields are increasing borrowing costs.

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Story summary

The Bank of England is likely to keep its interest rate at 4% on September 18, 2025, per a Reuters poll.
Economists anticipate a quarter-point cut in Q4 2025 and another early next year, though some doubt any cuts this year.
Inflation is expected to hit 4% in September, with a return to the 2% target projected for mid-2027.
The UK economy is forecasted to grow modestly at 0.2-0.4% quarterly through 2026.
The Bank plans to reduce its bond holdings by £50-100 billion over the next year, while rising gilt yields are increasing borrowing costs.