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Bank of England lowers rates after tight vote but signals caution about further cuts
The Monetary Policy Committee cut rates by 0.25 points after inflation fell to 3.2%, marking the lowest base rate since early 2023 amid weak growth and budget support measures.
- On Thursday the Bank of England's Monetary Policy Committee cut the Bank rate from 4.0% to 3.75% by a five-to-four vote, its lowest since early 2023.
- Thanks to autumn Budget measures, CPI inflation is likely to fall by around 0.5 percentage points, easing near-term pressure after a 0.1% economic contraction in October.
- Notably, Mr Bailey switched his vote and tipped the balance as four MPC members opposed the cut, citing inflation concerns, while he said, `We still think rates are on a gradual path downward.`
- Variable-Rate mortgage holders will see monthly payments fall automatically, and about 500,000 homeowners with tracker mortgages will feel direct changes while cheapest fixed deals remain above 3.5 per cent.
- Looking ahead, the Bank of England expects zero growth in the last three months of 2025 and sees inflation nearing target earlier than the early 2027 inflation forecast timeframe, while market pricing suggests further cuts next year.
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Bank of England cuts interest rates to lowest in almost three years after sharp dip in inflation
The Bank of England on Thursday cut its key interest rate for the first time in four months amid signs that the stubbornly high inflation that has plagued British consumers and businesses is beginning to ease.
·Mumbai, India
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Coverage Details
Total News Sources110
Leaning Left16Leaning Right7Center27Last UpdatedBias Distribution54% Center
Bias Distribution
- 54% of the sources are Center
54% Center
L 32%
C 54%
14%
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