BANK OF ENGLAND GOVERNOR ANDREW BAILEY PRESS CONFERENCE

Interest Rate Cut: The Bank of England lowered interest rates by 0.25% to 4.50% in its first meeting of 2025.

Inflation Forecast: Inflation is now expected to peak at 3.7% in Q3 2025 (previous forecast was 2.8%). It should return to the 2% target by Q4 2027.

Future Rate Cuts: The Bank will lower rates slowly and carefully in the future.

GDP Growth Forecast:

2025: 0.75% (previously 1.5%)

2026 & 2027: 1.5% (small changes from the last forecast)

Market Expectations for Interest Rates:

End of 2025: 4.2% (previously 3.7%)

End of 2026: 4.1% (previously 3.7%)

End of 2027: 4.0% (previously 3.6%)