UK interest rates held at 3.75% but Bank says future cuts likely

FEB 6 - The Bank of England has held interest rates at 3.75% after a knife-edge vote which split the decision-making committee five to four. Economists Kenya breaking news | Kenya news today |..

✨ Key Highlights

The Bank of England has maintained interest rates at 3.75% following a close five to four vote, though future cuts are expected this year. This decision comes despite a mixed economic outlook and a reduction in borrowing rates in December.

The Bank of England lowered its forecast for UK economic growth in 2026 from 1.2% to 0.9% and raised its unemployment forecast from 5% to 5.3%.
Governor Andrew Bailey indicated that CPI inflation is predicted to reach the Bank's target of 2% by "some point in the Spring".
Market expectations for the first rate cut have shifted to April from June, according to analysts like Paul Dales, chief UK economist at Capital Economics.

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