Bank of England Cuts to 4.00% — Narrowest Vote (5-4)

The Bank of England cut its policy rate to 4.00% in a narrow 5-4 vote, with four members preferring to hold given persistent inflation. UK CPI was projected to peak at approximately 4% in September 2025 due to energy prices before declining. UK GDP growth in Q2 2025 was a weak 0.1% QoQ. Governor Andrew Bailey emphasized the MPC would maintain vigilance on inflation persistence.