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Bank of England rate decision: "We need bold action by the Bank of England and a cut of 0.5%"

Journalist: Tony Redondo, Newspage

ended 06. May 2025

Ahead of Thursday's Bank of England interest rate decision, Newspage asked financial services experts and business owners for their views on what decision the Monetary Policy Committee will — and should — make. Views below.

8 responses from the Newspage community

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Tony Redondo
Founder at Cosmos Currency Exchange
We need bold action by the Bank of England and a cut of 0.5%, despite inflation being forecast to climb from the present 2.6% rate to 3.7%. The chief concern is the flat-lining economy and the fact the tariffs are not a done dish. Markets are betting on a 0.25% cut so a bolder cut now would be a proper boost. Threadneedle Street's ‘softly, softly’ approach is tantamount to no action and could bury the economy. Decisive action is needed. We can always adjust later once the tariffs and trade deals conclude.
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Ken James
Director at Contractor Mortgage Services
The Bank of England is back in the spotlight on Thursday. Should they cut rates? A 0.25% trim would be a timid gesture, just enough to pretend they’re doing something. Should they implement a 0.5% cut? It may signal fear, desperation and might spook markets into thinking the Bank knows something we don’t. Steady as she goes might be the best move and pray the fog clears before the next meeting. It’s not bold, but in an environment as volatile as this, inaction may look like maturity. The problem is, sitting on their hands won’t help businesses struggling with weak demand or households being chewed alive by rising living costs.
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Keith Budden
Managing Director at Ensurety
The Bank of England should reduce rates by 0.25%. The general anxiety following President Trump playing hokey-cokey with trade tariffs has only served to weaken business confidence. When I speak to my business network, any notes of trepidation will almost always be equalled out by notes of optimism, but now any notes of optimism have either completely disappeared or are written in faint pencil on the thinnest tracing paper available. By itself, a 0.25% interest rate cut will not be enough to turn the majority of business owners into optimists but hopefully it will make those pencil marks bolder and be one step out of the current malaise.
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Ben Perks
Managing Director at Orchard Financial Advisers
The choice is simple: cut or hang borrowers out to dry. The resilience of the uk mortgage market and its borrowers has been remarkable, but it’s time for some respite now. Drop the base rate, stimulate the economy and put pounds back in borrowers' pockets.
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Jack Tutton
Director at SJ Mortgages
A cut is definitely on the cards but I think the Bank of England will be conservative with their vote and only reduce the base rate by 0.25%. A bolder cut by 0.5% would be welcomed and help boost the economy, however this is unlikely given the Monetary Policy Committee's more cautious approach.
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Rohit Kohli
Director at The Mortgage Stop
I think the Bank of England will cut the base rate by 0.25% this week. Their hands are tied and something has to be done to inject momentum into the economy. Inflation may have eased, but the economy is flatlining and businesses need a reason to invest again. A modest rate cut is the most immediate lever the Bank has to give things a much-needed jolt. We also have to remember that some major cost pressures haven’t even filtered through yet—higher energy prices and the knock-on effects of Trump’s tariffs are still working their way into the system. Waiting to see how those affect inflation before acting could be calamitous. The moment is now, not in two months when things could go from bad to worse. As for the government, it’s clear the UK is grasping at anything that looks like help. There’s no strong plan, no firm stance — just reactive policymaking. Labour’s economic strategy is quickly coming apart, and Rachel Reeves needs to acknowledge that things aren’t going as planned.
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Stephen Perkins
Managing Director at Yellow Brick Mortgages
Economic pressures will encourage a cut to the base rate this week, but with the Bank of England’s well-established cautious approach it’s more likely to be a 0.25% reduction rather than a bolder slashing.
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Sean Horton
Managing Director at Respect Mortgages
The Monetary Policy Committee will most likely keep rates steady at 4.5% this week. With inflation at 2.6% the Bank will tread carefully, being wary of an expected inflation bump this autumn. Growth remains sluggish at best but, with wage increases still running at 5.9%, the inflation fight isn't over. US tariff threats are understandably creating real jitters for businesses and consumers alike. The OBR warns they could slash GDP by 0.6%, wiping out growth and hurting confidence across sectors. Personally, I think the Bank should get in early and cut rates by 0.25%. Consumer confidence needs a boost and too many would-be buyers are sitting on their hands. A modest reduction would signal that better times are ahead without risking the inflation progress made so far.