US EditionWhy Has the Bank of England Cut Interest Rates?
UNITED KINGDOM, AUG 7 – The Bank of England's 0.25% rate cut reflects concerns over rising unemployment and slow growth despite inflation above target, with the committee narrowly approving the move 5-4.
- The Bank of England cut its main interest rate by a quarter percentage point to 4% to support the U.K. economy, according to the bank.
- This decision marks the fifth rate cut since last August when the rate was 5.25%, as stated by the Bank of England.
- Policymakers expect inflation will return to the target of 2% by the second quarter of 2027 despite a 3.6% rise in consumer prices, according to the Bank of England's projections.
- Rachel Reeves, the U.K. Treasury chief, welcomed the rate cut as good news to reduce costs for mortgages and loans, helping families and businesses.
15 Articles
15 Articles
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