The Bank of England has cut interest rates to 4.5 percent, responding to weak economic growth and an unexpected drop in inflation, which decreased to 2.5 percent. This represents the third rate cut in six months, with some committee members advocating for a more significant half-point reduction. Despite inflation decreasing, particularly in services, the Bank remains cautious due to strong wage growth and potential inflationary risks. Governor Andrew Bailey indicated that a careful monitoring approach will guide future decisions, particularly in response to government spending and tax changes.
The Bank of England cut interest rates for the third time in six months, reflecting weak economic growth and an unexpected slowdown in inflation.
Governor Andrew Bailey emphasized a gradual and careful approach to further rate reductions, monitoring both domestic and international economic developments.
Collection
[
|
...
]