Interest rates cut to 4.75%

08 Nov 2024

The Bank of England has cut interest rates for the second time this year as expected.

The Bank's Monetary Policy Committee (MPC) voted by a majority of eight to one to reduce the base rate by 0.25 percentage points to 4.75%.

The decision means rates are now at their lowest point in more than year. The last time rates were below 5% was June 2023.

Alpesh Paleja, Interim Deputy Chief Economist at the Confederation of British Industry (CBI), said: 'While the worst of inflationary pressures are behind us, the MPC is treading an increasingly fine line. On the one hand, the CBI's surveys suggest that growth is already shifting down a gear. But on the other, some measures of domestic price pressures – notably services inflation – remain stubbornly high.

'That line has become even finer after October's Budget. The loosening in fiscal policy is set to stoke inflation a little further, with the resulting short-term boost to demand not matched by a boost to supply potential. The rise in employer NICs will also only add to the cumulative cost burden for businesses, exacerbated by higher interest rates over the last few years.

'On balance, the MPC is still likely to proceed with more rate cuts going forward. But renewed inflationary pressures underscore that the pace will likely be gradual, with the prospect of a faster loosening in monetary policy now fading.'

icaew logo acca logo sage logo sageone logo bas xero

Home | Contact us | Accessibility | Disclaimer | Help | Site map | © 2025 Madisons. All rights reserved.

We use cookies on this website, you can find more information about cookies here.

Madisons is a trading name of Madison Business Services Limited Registered office: Bushbury House, 435 Wilmslow Road, Withington, Manchester, M20 4AF. Company Number: 03800186, VAT Registration Number: 741 1182 67 Registered to carry on audit work in the UK and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales. Details about our Audit Registration can be viewed at www.auditregister.org.uk.
Telephone: 0161 434 3535 | Fax: 0161 445 0430 | Email: enquiries@madisons.co.uk.

Address
Madisons, Bushbury House, 435 Wilmslow Road, Withington, Manchester, Lancashire M20 4AF