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.
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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.
·Vilnius, Lithuania
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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
·Manila, Philippines
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Coverage Details
Total News Sources175
Leaning Left24Leaning Right14Center31Last UpdatedBias Distribution45% Center
Bias Distribution
- 45% of the sources are Center
45% Center
L 35%
C 45%
R 20%
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