Morgan Stanley, Citigroup and UBS Global Research forecast that the Bank of England (BoE) would deliver an interest rate cut in December, they said separately on Friday, a day after the central bank kept rates unchanged at its policy meeting.

Get the latest on the Bank of England’s rate decision, inflation outlook, and what it means for December’s interest rates. Click for more on this rate decision.

At its meeting ending on 5 November 2025, the Monetary Policy Committee voted by a majority of 5–4 to maintain Bank Rate at 4%. Four members voted to reduce Bank Rate by 0.25 percentage points, to 3.75%.

The Federal Reserve, the world’s most powerful central bank, will be at the center of a crowded stage as its monetary-policy committee meets this week.

The Federal Reserve cut interest rates by 25-basis-points in October, though two policymakers dissented from the move, with one saying that he remains concerned about inflation.

Federal Reserve Vice Chair Philip Jefferson said that as interest rates have moved toward a more neutral level, "it makes sense" now to proceed with caution.

The Bank of England’s Monetary Policy Committee meets tomorrow (6 November) and while few analysts expect a cut, plateauing inflation and a weak economy could strengthen the case for an interest rate