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"The Bank of England should cut rates today. The UK economy is in desperate need of a pick-me-up"

ended 06. November 2025

FINANCIAL experts and business owners are divided on whether the Bank of England should cut rates at lunchtime today.

Marcus Wright, Managing Director at Bolton-based Bolton Business Finance, said the doves are likely to be disappointed: “There is more chance of massive tax cuts in the Budget than rates being cut this week. Unfortunately, neither is going to happen and, as a result, British businesses up and down the country will continue their misery.

"A small rate cut would help many struggling businesses and homeowners at a time of high taxes and inflation pressure.”

Phil Ingle, Managing Director at Phil Ingle Associates, said a hold would be the right decision: "The Bank of England should not cut rates today. Inflation is still too high and the savings ratio too low.

“We know we need growth, but trying to achieve it through encouraging further borrowing will be less effective than through better Government budget management. November 26th will be more important than November 6th.”

Tony Redondo, Founder at Newquay-based Cosmos Currency Exchange, said that while the Bank of England should cut rates, it likely won't: "The Bank of England should cut rates today. The UK economy is in desperate need of a pick-me-up. Sadly, I very much doubt it will. Not weeks before the Budget, and not when they risk being accused of political favouritism.

“I expect the November Bank of England meeting to be a close call, with the decision to leave Bank Rate unchanged at 4% passing by the slimmest majority possible. A 5-4 vote split looks possible, with Governor Bailey having to cast the deciding vote.”

Anita Wright, Chartered Financial Planner at Ribble Wealth Management, said: "Inflation is still around twice target, so in textbook terms you would hold. But growth isn’t convincing, households feel poorer and consumer spend drives roughly 60% of GDP. Prolonged weakness now risks doing more damage than a spell of above-target inflation”.

“That’s why an earlier-than-ideal cut—paired with clear guidance that further moves depend on inflation actually easing—makes sense.”

However Wright warned that: “Unless fiscal policy shifts from revenue-raising to productivity-raising, a rate cut buys time but won't change the game.”

Colette Mason, AI Consultant at London-based Clever Clogs AI, said a cut is essential for the tech sector: "The UK Government cannot claim to be an 'AI Superpower' while the Bank of England simultaneously pulls the plug on the entire innovation ecosystem. 

“The Bank is forcing us to compete in a global AI race with the handbrake on. The Bank of England is strangling tomorrow's economy to fix yesterday's inflation.”

Rob Mansfield, Independent Financial Advisor at Tonbridge-based Rootes Wealth Management, was in the hold camp: “No, the Bank of England should hold rates steady. Inflation is still too high. With the likelihood of a tax-raising Budget later in the month, holding firm and seeing what the Chancellor announces makes the most sense.”

Like Redondo, Craig Fish, Director at London-based Lodestone Mortgages, said a cut is urgent to avoid further economic contraction: “Keeping rates this high for too long risks pushing the UK into a deeper slowdown. A small 0.25% cut would show confidence that inflation is heading in the right direction and give households and businesses some much needed breathing room.

"However, with uncertainty around the upcoming Autumn Budget and its potential impact on inflation, borrowing and government spending, the Bank is likely to err on the side of caution and hold steady for now.”

But Adam Stiles, Managing Director at London-based Helix Financial Partners, said the Budget could actually trigger a pre-emptive cut: “With the upcoming Doom Budget offering very little hope to anyone of a reprisal on the stranglehold on their wallets and bank accounts, a Bank of England base rate cut looks increasingly likely. With the pressure cooker of an economy set to boil over, hopefully the Bank of England can let the steam off with a base rate cut.”

Samuel Mather-Holgate, Independent Financial Adviser at Swindon-based Mather and Murray Financial, said Threadneedle Street's mandate needs to be changed: “If the Bank of England had a dual mandate like the US, they would look to stimulate the economy. Maybe it's time for a change of rules at Threadneedle Street.”

Scott Gallacher, Director at Leicester-based Rowley Turton, said he was genuinely conflicted: “The economy clearly needs a boost, but inflation remains a concern. Sitting tight for the time being is probably the better option.”

11 responses from the Newspage community

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Tony Redondo
Founder at Cosmos Currency Exchange
The Bank of England should cut rates on Thursday. The UK economy is in desperate need of a pick-me-up. Sadly, I very much doubt it will. Not weeks before the Budget, and not when they risk being accused of political favouritism. I expect the November Bank of England meeting to be a close call, with the decision to leave Bank Rate unchanged at 4% passing by the slimmest majority possible. A 5-4 vote split looks possible, with Governor Bailey having to cast the deciding vote. The forward guidance and updated economic projections are likely to be little changed, keeping the bias tilted towards further, albeit gradual, rate reductions.
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Anita Wright
Chartered Financial Planner at Ribble Wealth Management
Inflation is still around twice target, so in textbook terms you would hold. But growth isn’t convincing, households feel poorer and consumer spend drives roughly 60% of GDP. When people cut back, business investment and productivity follow them down. Prolonged weakness now risks doing more damage than a spell of above-target inflation. That’s why an earlier-than-ideal cut—paired with clear guidance that further moves depend on inflation actually easing—makes sense. It quietly delivers negative real yields, relieving a heavily indebted public and private sector. It’s an old playbook used after the Second World War: let growth heal while inflation does a little of the debt-reduction work. Two caveats. First, credibility: any cut should be small and explicitly conditional, or the Bank looks like it’s blinking. Second, monetary policy can’t carry this alone. Unless fiscal policy shifts from revenue-raising to productivity-raising, a rate cut this week buys time but won't change the game.
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Colette Mason
AI Ethics Consultant at Clever Clogs AI
Yes, a cut is essential. The UK Government cannot claim to be an 'AI Superpower' while the Bank of England simultaneously pulls the plug on the entire innovation ecosystem. The data is damning: early-stage tech funding is down nearly 50%, and 43% of founders are now considering relocating to the US, taking their future IP and tax receipts with them. The Bank is forcing us to compete in a global AI race with the handbrake on. The Bank of England is strangling tomorrow's economy to fix yesterday's inflation.
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Scott Gallacher
Director at Rowley Turton
I'm genuinely conflicted; the economy clearly needs a boost, but inflation remains a concern. Sitting tight for the time being is probably the better option.
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Craig Fish
Director at Lodestone Mortgages
The Bank of England should cut rates this week but it’s unlikely they will. Inflation has eased to 3.8%, wage growth is slowing and the economy is clearly losing steam. Keeping rates this high for too long risks pushing the UK into a deeper slowdown. A small 0.25% cut would show confidence that inflation is heading in the right direction and give households and businesses some much needed breathing room. However, with uncertainty around the upcoming Autumn Budget and its potential impact on inflation, borrowing and government spending, the Bank is likely to err on the side of caution and hold steady for now. It’s a safe move, but arguably the wrong one at this stage of the cycle.
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Adam Stiles
Managing Director at Helix Financial Partners
Should the Bank of England cut or will it are two very different things. With the upcoming Doom Budget offering very little hope to anyone of a reprisal on the stranglehold on their wallets and bank accounts, a Bank of England base rate cut looks increasingly likely. With the pressure cooker of an economy set to boil over, hopefully the Bank of England can let the steam off with a base rate cut.
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Samuel Mather-Holgate
Managing Director & IFA at Mather and Murray Financial
If the central bank doesn't cut rates, they will be setting Reeves up for an incredible task to get her Budget balanced. The economy is stagnant and inflation is poised to fall. If the Bank of England had a dual mandate like the US, they would look to stimulate the economy. Maybe it's time for a change of rules at Threadneedle Street.
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Rob Mansfield
Independent Financial Advisor at Rootes Wealth Management
No, hold steady. Inflation is still too high. With the likelihood of a tax-raising Budget later in the month, holding firm and seeing what the Chancellor announces makes the most sense.
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Phil Ingle
Managing Director at Phil Ingle Associates
The Bank of England should not cut rates this week. Inflation is still too high and the savings ratio too low. We know we need growth, but trying to achieve it through encouraging further borrowing will be less effective than through better Government budget management. November 26th will be more important than November 6th.
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Marcus Wright
Managing Director at Bolton Business Finance
There is more chance of massive tax cuts in the Budget than rates being cut this week. Unfortunately, neither is going to happen and, as a result, British businesses up and down the country will continue their misery. A small rate cut would help many struggling businesses and homeowners at a time of high taxes and inflation pressure.
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Chris Pearson
Head of Intermediary Mortgages at HSBC
Brokers are the beating heart of the mortgage market. They say that a small rate reduction could help stimulate buyer confidence and affordability, supporting a smoother recovery in housing transactions after months of subdued activity. HSBC UK's Broker Barometer reveals the majority of mortgage brokers are calling on the Bank of England to cut the Base Rate, with a small reduction of 0.25% seen by most as providing the biggest benefit to the property market. Four in ten brokers(41%) say a reduction from 4.00% to 3.75% will provide the biggest benefit to the property market. One in five (18%) say the rate should remain unchanged at 4.00%. Less than 1% believe that any increase would be positive for the market. One quarter (25%) of brokers would like to see a deeper cut to 3.50% while only 16% favour an aggressive reduction to 3.25%. Only 0.8% of brokers believe rates should rise to some degree.