The Building Cost Information Service (BCIS) is the leading provider of cost and carbon data to the UK built environment. Over 4,000 subscribing consultants, clients and contractors use BCIS products to control costs, manage budgets, mitigate risk and improve project performance. If you would like to speak with the team call us +44 0330 341 1000, email contactbcis@bcis.co.uk or fill in our demonstration form
Published: 20/03/2025
The Bank of England’s Monetary Policy Committee (MPC) voted by a majority of 8–1 to maintain the base rate at 4.5% at its March meeting(1).
One member of the committee voted to reduce the rate further to 4.25%.
In setting out the context to the vote, the MPC said: ‘Global trade policy uncertainty has intensified, and the United States has made a range of tariff announcements, to which some governments have responded. Other geopolitical uncertainties have also increased and indicators of financial market volatility have risen globally.
‘While UK GDP growth estimates have been slightly stronger than expected at the time of the February Monetary Policy Report, business survey indicators generally continue to suggest weakness in growth and particularly in employment intentions. In recent quarters, subdued activity has been judged to reflect both demand and supply factors.
‘Domestic price and wage pressures are moderating, but remain somewhat elevated. Although global energy prices have fallen back recently, they remain higher than last year and CPI inflation is still projected to rise to around 3.75% in 2025 Q3. While inflation is expected to fall back thereafter, the Committee will pay close attention to any consequent signs of more lasting inflationary pressures.’
Reacting to the decision, Dr David Crosthwaite, chief economist at BCIS, said: ‘With inflationary pressures building both domestically and internationally, it’s no real surprise that the Bank of England decided to keep the base rate unchanged at 4.5%.
‘With the cost of borrowing remaining elevated, investment to grow the economy is likely to stall further. There is now a growing clamour for the Bank to start cutting rates sooner rather than later as the economic environment continues to deteriorate.
‘It’s now over to the government’s Spring Statement next week to see if there’s any real stimulus available to avoid our economy entering a prolonged period of stagnation.’
The MPC’s next vote will be published on Thursday 8 May 2025.
To keep up to date with the latest industry news and insights from BCIS register for our newsletter here.
(1) Bank of England – Bank Rate maintained at 4.5% – March 2025 - here
