Base Rate Cut to 2-year Low of 4%

Bank of England cuts interest rate from 4.25% to 4% – Thursday 7 August 2025

The Bank of England has cut its interest rate to the lowest level in more than 2-years.  The decision to cut rates from 4.25% to 4% comes after members were told to vote for a second time after facing a split decision. It follows the Bank’s chief economist, Huw Pill, telling an audience of bankers and economists that the pace of rate-cutting had to slow down to curb high inflation.

The reduction, which had been widely predicted by financial markets, is the third this year, and the fifth since August 2024. The rate plays a large role in the rates offered by banks and lenders on various products, including Commercial Mortgages, Business Loans, Asset and Invoice Finance to name just a few. This is welcoming news for business owners who may want to borrow!

For expert tailored advice and help with your business borrowing requirements, contact our office: 01204 398816 or email: info@independentbusinessfinance.co.uk – we are ready when you are!