Further UK interest rate cuts this year seem less probable.

Written by Emily J. Thompson, Senior Investment Analyst

Source: CNBC

Updated: Aug 20 2025

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Source: CNBC

Bank of England Interest Rates: Traders are increasingly expecting the Bank of England to maintain interest rates at 4% for the remainder of the year, following a higher-than-expected inflation rate of 3.8% in July.
Inflation Concerns: The latest inflation figures indicate rising food prices and persistent inflation in the services sector, although energy prices provided some downward pressure.
Future Rate Cuts: Economists suggest that while a rate cut in November remains possible, it will depend on inflation aligning with BOE forecasts and improvements in the labor market.
Impact on Borrowers: The current economic conditions raise concerns for U.K. borrowers, particularly those with tracker mortgages, as mortgage rates may see small increases due to the inflation data.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.