Bank of England holds interest rate at 4.75% but warns of UK stagnation risk

Central bank downgrades growth forecast amid threat from budget fallout, rising inflation and Trump trade tariffs

The Bank of England has kept UK interest rates unchanged but warned Britain’s economy is on the brink of stagnation after Rachel Reeves’s budget as the world faces stubbornly high inflation and the risk of Donald Trump reigniting trade wars.

Holding interest rates at 4.75% in a widely expected decision, the central bank’s monetary policy committee (MPC) said on Thursday it had slashed its UK forecasts for the final three months of the year with a prediction of zero economic growth. The Bank had predicted growth of 0.3% as recently as November.

Topics

Bank of England keeps rates on hold as growth prospects dim

Central bank maintains benchmark at 4.75% and highlights risk of persistent inflation
Financial Times - 44m
Interest rates held as Bank says economy doing worse

The Bank considered a rate cut as it thinks the economy has performed worse than it expected.
BBC News - 1h
Bank of England warns of 'heightened uncertainty' as it keeps interest rates on hold

The U.K.’s central bank has warned about “heightened uncertainty” as it kept interest rates on hold after inflation moved further above target even at a time when the British economy is flatlining ...
ABC News - 2h
Bank of England Holds Rates as U.K. Inflation Rises Amid Economic Uncertainty

Stubborn inflation, tax rises and high interest rates make it difficult for many to muster optimism, at least in the short term.
The New York Times - 3h
Bank of England holds rates but vote split surprises markets

Economists widely expected a rate hold at the December meeting, as policymakers remain concerned with stubborn services inflation and wage growth.
CNBC - 3h
Bank of Japan holds rates at 0.25%, yen weakens to over four-month low

The decision comes a day after the U.S. Federal Reserve cut rates by 25 basis points, bringing the federal funds rate to 4.25%-4.5%.
CNBC - 9h
UK inflation increase solidifies expectations interest rates will be kept on hold

Inflation in the U.K. has risen to its highest level since March
ABC News - 1d
UK inflation hits eight-month high of 2.6%, fuelling calls to hold interest rates

Annual increase in November driven by rising cost of petrol and groceries and hike in tobacco duty in budget. UK inflation data leaves Starmer miles off goal of growth ‘felt in people’s ...
The Guardian - 1d
Bank of Japan expected to keep rates on hold this week — CNBC survey

The central bank is expected to keep interest rates on hold this week, awaiting clarity on domestic trends and U.S. policy under Trump, a CNBC survey finds.
CNBC - 3d