UK house prices increased by 0.4% month-over-month in July 2025, slightly above the estimated 0.3% and up from 0.0% in June, according to Halifax. Year-over-year, house prices rose 2.4%, a slight decline from the previous 2.5%, marking the fastest pace of increase since the start of the year and suggesting market stabilization. Meanwhile, the Bank of England (BoE) voted to cut interest rates by 25 basis points, a hawkish move compared to expectations of a larger cut. The Monetary Policy Committee (MPC) vote was finely balanced, with a rare recast of the vote where one member, Taylor, changed his preference from a 50 basis points cut to 25 basis points. The final vote was five in favor of the 25 basis points cut, fewer than the forecasted seven, with no votes for a rate hike. Market participants have reduced expectations for further easing, now pricing in about 20 basis points of additional cuts by year-end, down from around 27 basis points previously. The BoE's cautious stance reflects the tension between rising inflation and a weakening labor market, with the central bank likely to await more data before deciding on future policy moves.