US EditionBank of England Cuts Base Rate to 4% After Split MPC Vote
- On August 7, 2025, the Bank of England’s Monetary Policy Committee lowered the base interest rate by a quarter of a percentage point, bringing it down to 4%, marking the fifth reduction since August 2024.
- This decision responded to a sluggish UK economy that grew 0.7% in early 2025 after stagnating in late 2024 while inflation and unemployment rose.
- The MPC voted 5-4 to reduce rates, balancing inflation at 3.6%, well above the 2% target, against rising unemployment to 4.7%, the highest in four years.
- Chief economic advisor Matt Swannell indicated that a quarter-point reduction in interest rates is highly likely given the economy's slow growth, while Susannah Streeter emphasized that considerable challenges still remain ahead.
- The cut aims to ease borrowing costs for households and businesses but occurs amid concerns about possible tax rises and challenges to sustained economic growth.
187 Articles
187 Articles
Can the bank's rate cut save Britain's beleaguered property market?
The interest rate cut to four per cent provides some welcome relief for homeowners and buyers, but questions remain about whether it's enough to revive Britain's struggling property market.While rates are now at their lowest point in two years, the reality is that borrowing costs remain seriously challenging for many buyers and are still sufficiently high to make investors run to better returns elsewhere.The property market finds itself caught b…
BOE’s Pill Warns Quarterly Pace of Interest-Rate Cuts in Doubt
Bank of England Chief Economist Huw Pill warned the central bank may need to slow its once-a-quarter pace of interest-rate cuts after a resurgence in inflation that risks changing the behavior of households and businesses.
The UK's FTSE 100 index fell 0.69 percent yesterday after the Bank of England's decision to cut interest rates by 25 basis points to 4 percent.
Bank of England cuts rate, keeps watch over tariffs
LONDON, United Kingdom — The Bank of England on Thursday cut its key interest rate by a quarter point to 4 percent, the lowest level in 2.5 years, as it bids to boost a UK economy threatened by US tariffs. Alongside the expected decision, the BoE forecast British economic growth to hit 1.25 percent this
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