Bank of England Holds Rates at 4%, Four Members Dissent for Cut

By / / Breaking News

Key Takeaways

  • The Bank of England (BoE) Monetary Policy Committee (MPC) voted 5-4 to maintain the Bank Rate at 4% in November 2025, with four members advocating for a 25 basis point cut to 3.75%.
  • BoE guidance indicates that interest rates are likely to follow a "gradual downward path" as disinflation progresses, with overall risks to inflation now considered more balanced.
  • The UK 2-year Gilt yield fell following the BoE statement, while traders are holding steady on easing bets, anticipating 15 basis points of cuts in December.
  • US Foods (USFD) and Tapestry (TPR) reported strong quarterly earnings, beating analyst expectations and raising their full-year outlooks.
  • Echostar (SATS) announced a significant $2.6 billion deal to sell its unpaired AWS-3 spectrum licenses to SpaceX in exchange for stock.

The Bank of England's Monetary Policy Committee (MPC) has decided to keep the benchmark Bank Rate unchanged at 4% following its November 2025 meeting. This decision, announced on Thursday, November 6, 2025, was reached with a narrow 5-4 vote, indicating a significant division among policymakers. Four members—Sarah Breeden, Swati Dhingra, Dave Ramsden, and Alan Taylor—voted to reduce the Bank Rate by 0.25 percentage points to 3.75%. This split highlights the ongoing debate within the central bank regarding the appropriate pace of monetary policy adjustment.

The BoE's forward guidance suggests that if progress on disinflation continues, the Bank Rate is "likely to continue on a gradual downward path," emphasizing a "gradual and careful approach" to further withdrawal of monetary policy restraint. The MPC noted that the restrictiveness of monetary policy has decreased as the Bank Rate has been reduced, and that overall risks to inflation are now more balanced. However, the committee also stressed that "more evidence is needed to be sure that CPI is on track to return to 2%." The BoE forecasts CPI inflation to be 2.5% in one year's time based on market interest rates.

Economic projections from the BoE indicate a revised GDP growth of 0.2% quarter-on-quarter for Q3 2025, down from a September forecast of 0.4%, and 0.3% for Q4 2025. Private-sector regular wage growth is projected at 3.5% year-on-year for Q4 2025, gradually declining to 2.9% by Q4 2027. The unemployment rate is predicted to be 5.0% in Q4 2025 and Q4 2026, falling to 4.7% by Q4 2028. Market rates imply a Bank Rate of 3.9% in Q4 2025, 3.5% in 2026, 3.5% in Q4 2027, and 3.6% in Q4 2028. In response to the BoE statement, the UK 2-year Gilt yield fell by 2 basis points to 3.79%. Traders are maintaining their easing bets, with expectations for 15 basis points of cuts in December.

In corporate news, US Foods Holding Corp. (USFD) reported robust Q3 2025 earnings, with adjusted EPS of $1.07, surpassing the estimated $1.04. Revenue reached $10.2 billion, slightly above the $10.17 billion estimate. The company also raised its full-year adjusted EPS guidance to a growth range of +24% to +26%. Similarly, Tapestry Inc. (TPR) announced strong Q1 earnings, with adjusted EPS of $1.38 against an estimated $1.26, and revenue of $1.70 billion, exceeding the $1.64 billion estimate. Tapestry also raised its full-year revenue forecast to $7.3 billion and adjusted EPS guidance to $5.45 to $5.60.

Bombardier (BBD.B) reported Q3 2025 revenues of $2.31 billion, exceeding estimates of $2.25 billion, but adjusted EPS came in at $1.21, below the estimated $1.41. The company delivered 34 aircraft in the quarter, an increase of 4 units from Q3 2024. Becton Dickinson and Co. (BDX) posted Q4 2025 adjusted EPS of $3.96, slightly above the $3.92 estimate, with revenue of $5.89 billion, largely meeting the $5.91 billion forecast.

In other significant developments, Echostar Corp. (SATS) has agreed to sell its full unpaired AWS-3 spectrum license portfolio to SpaceX for approximately $2.6 billion in SpaceX stock. This transaction builds on a previous agreement between the companies from September. Additionally, Apple (AAPL) has voiced strong criticism against the EU's digital competition laws, warning that they increase the likelihood of "fraud and scams" for users. Meanwhile, the European Union has acknowledged its lack of near-term power to significantly influence China on rare earths supply, a critical issue for various industries.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. We are not financial professionals. The authors and/or site operators may hold positions in the companies or assets mentioned. Always do your own research before making financial decisions.
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