Along with the interest-rate decision and policy statement, followed by a live news conference, the Bank of England will present its August 2025 Monetary Policy Report today at noon UK (4:30 PM IST). Markets are valuing an 80%+ possibility of a 0.25 percentage-point cut—from 4.25% to 4.00%—which would be the fifth cut since August 2024. Forward guidance points towards another quarter-point ease before year-end.
Although June's 3.6% inflation print is still well above the BoE's 2% target, lower wage growth, increasing unemployment, and general signs of economic slowdown support the case for more relaxed policy. Although prices are sticky, the Monetary Policy Committee (MPC) has underlined a "gradual and deliberate" approach, balancing the need to contain inflation against the danger of choking off already-fragile growth.
Some members want a 0.25-point cut, others for 0.50 cut, and still others prefer to hold rates, hence splitting committee votes three ways. Global obstacles, especially U.S. tariff conflicts, further complicate the forecast. The MPC's vote split, updated inflation predictions, and changed growth forecasts will all be covered in today's report, therefore providing new perspective on the Bank's strategy for future months.


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