Base Rate Unchanged Going Into 2025

The final MPC vote of the year sees no change to the base rate, remaining at 4.75%. 6 voted in favour of a hold, with 3 members voting for a 0.25% reduction. Bank of England governor Andrew Bailey has said that a gradual approach to cuts remains, but pointed out uncertainty regarding wages and prices.

Inflation figures for November were released on Wednesday, with an increase to 2.6%, from 2.3% in October and 1.7% in September. The increase in inflation is broadly in line with expectations, although there will be questions over the likelihood of a cut at the next meeting if this continues.

The period before February 6th will allow for a greater picture regarding the increase to employer national insurance, with 2 further members needing to favour a reduction at the next vote.