When will interest rates go down again?
Summary
The Bank of England is expected to cut interest rates at its meeting on August 7. In the past year, the Bank cut rates several times to 4.25% to manage inflation, which is currently above the target level. Even though predicting future rate changes is tough, many experts think further cuts will happen as inflation pressures ease.Key Facts
- The Bank of England is expected to cut the interest rate from its current 4.25% level.
- The Bank aims to keep UK inflation at 2% by adjusting interest rates.
- Inflation, measured by CPI, was 3.6% in June 2025, still above the 2% target.
- Many analysts believe rates will be cut at the August meeting if the economy slows.
- Interest rate changes impact mortgage, credit card, and loan rates for many people.
- Mortgage rates remain high, affecting new homebuyers and those remortgaging.
- About 800,000 fixed-rate mortgages will expire each year through 2027, potentially increasing costs.
- Global economic factors, like US tariffs and regional conflicts, add uncertainty to rate changes.
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