The Bank of England voted 5–4 to hold the Bank Rate at 4.00% in November 2025, with four members preferring a 25 bps cut to 3.75%, as the MPC judged that inflation had peaked and risks to price stability and growth had become more balanced.

• Inflation outlook: CPI inflation was judged to have peaked, with underlying disinflation progressing amid easing pay growth and softer services prices. The recent rise in headline inflation was attributed to temporary base effects in energy and administered prices.

• Labour market and growth: Economic growth remained subdued and labour market slack was increasing, helping to moderate wage pressures, though members differed on how much spare capacity had emerged.

• Risk assessment: The Committee noted that upside risks from inflation persistence had diminished, while downside risks from weak demand had become more apparent, leaving the risk balance broadly even.

• Policy stance: Members agreed that monetary policy remained restrictive and continued to weigh on demand, contributing to disinflation; however, its restrictiveness had lessened as prior rate cuts took effect.

• Majority view (5 votes): Those voting to hold highlighted lingering risks of inflation persistence, elevated wage growth, and uncertainty around structural labour market shifts, arguing that premature easing could stall disinflation.

• Minority view (4 votes): Members preferring a cut cited established disinflation, rising slack, and restrictive policy conditions that risked an inflation undershoot and excessive drag on consumption and employment.

• Forward guidance: The MPC reaffirmed that further reductions in Bank Rate would depend on the pace of disinflation, suggesting that gradual easing remained likely if inflation continued to trend toward target.

• Monetary Policy Report - November 2025