Constant remains the interest rate her Bank of England (BOE) at 4.25%, as announced today (19.6.2025),
According to analysts, two are the main reasons for the bank’s interest rates. First, inflation in the country at 3.4%. This is the highest level of inflation for more than a year, while the government’s goal is to drop to 2%. And secondly, the “brazen” situation in the Middle East that can affect the international economy.
As the Bank of England report notes, “since its last meeting in May, oil prices rose by 26% while gas prices by 11%. The bank also notes that the interest rate setting is monitoring the increased volatility created in the economic and geopolitical environment and “will continue to evaluate and inform about the dangers of the economy”.
However, in the announcement issued by the Bank of England, it suggests that by the end of summer, if the country’s budgets are getting better, its interest rate can be reduced. Whatever the case, already in 2025 it has reduced it twice and a total of four, from August 2023 that had reached 5.25%.
But also Bank’s administration, Andrew Bailey, left a note of optimism, stating that “interest rates remain on a gradual downward course, though we left them unchanged today.” The next meeting of the Bank of England is scheduled for August 7th.