The Bank of England has reduced interest rates by 25 basis points to 4.5%, aligning with expectations but revealing splits among Monetary Policy Committee members regarding the depth of the cut. The accompanying economic projections indicate a worrying downgrade to the UK's growth outlook, suggesting a dovish trend in monetary policy. This decision signals potential for further rate cuts later this year, especially as external factors like potential UK-US tariffs were not considered, introducing further uncertainty into inflation and growth projections.
The Bank of England's decision to cut interest rates to 4.5% reflects a cautious approach, amidst a downgrade in the UK's economic growth outlook.
The MPC's recent vote, which included calls for a deeper rate cut, indicates a division in perspectives on how to navigate the current economic challenges.
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