Will Interest Rates Go Down In 2025. On 1st august 2025, the bank of england (boe) cut the base rate by a quarter of a percentage point to 5%. It's a bit of a mixed bag of predictions, but all of the big four banks are betting that rates won't drop this week.

Greg mcbride, bankrate’s chief financial analyst, expects rates to fall gradually throughout the year, reaching 5.75 percent by the end of 2025. A small deposit might mean you are more limited in the number of deals available to you.