Experts expect the Bank of England to hold the base interest rate at 4% today, but are not ruling out a 0.25% cut.

Members of the Bank’s Monetary Policy Committee (MPC) voted decisively by 7-2 in September to maintain the rate, but a closer decision is expected this time.

There is even some speculation that Governor Andrew Bailey (main picture) will have the casting vote in a 5-4 split.

More likely

However, a reduction in the rate is seen as being more likely in December when the Bank makes its last rate decision of the year.

By then MPC members will have the benefit of knowing what the Budget, on 26 November, has delivered and how the economy is reacting.

Mortgages fall

Earlier this week, there was news that average mortgage rates had fallen to the levels last seen before Liz Truss’ infamous Mini-Budget in September 2022.

Grant Slade, UK Economist at financial services firm Morningstar, says: “We expect the BoE to hold the Bank Rate steady at 4%.

“Still, we think the decision will prove a closer call for the Monetary Policy Committee, than it was during the bank’s September meeting.

One more cut

“Then, the majority of Monetary Policy Committee members felt that risks to a further uptick in the inflation rate outweighed the risk of demand weakening in the face of still high interest rates.”

But he went on to say that he expects the BoE to deliver one final base rate cut after its next meeting on 18 December.

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