Historical trend
Trend summary
The Bank of England base rate stood at 4.5% in May 2025, following four 25bp cuts from the 5.25% peak held from August 2023 to August 2024.
Trend
- The rate rose from a historic low of 0.1% in December 2021 to 5.25% by August 2023 over thirteen meetings.
- Four cuts of 25 basis points each have followed, bringing the rate to 4.5% by May 2025.
- The rate of 4.5% is above the ECB deposit rate (2.5%) and broadly in line with the US Federal Funds Rate.
Context
- The Monetary Policy Committee sets the base rate at meetings held eight times per year; decisions are published with minutes and a Monetary Policy Report every quarter.
- The base rate directly influences mortgage rates, savings rates, and the cost of government borrowing.
Official projections
The Bank of England (May 2025 Monetary Policy Report) projects a gradual easing path toward 3.75% over the next two years, conditional on inflation remaining on target.
Commentary contains no editorial judgement — describes direction, magnitude, and official projections only.
About this indicator
- Source
- Bank of England
- Update frequency
- Monthly
- Last updated
- 22 June 2026
- Next update
- 6 February 2025
- Licence
- OGL v3
- Direction
- → Flat
Statistics
- Latest
- 3.8 %
- Period high
- 4.3 %
- Period low
- 3.8 %
- Period average
- 4.0 %