The Bank of England has cut interest rates to 4.25%, marking the fourth reduction in a year, primarily due to easing inflation amidst global economic uncertainty. Governor Andrew Bailey acknowledged the unpredictable impact of US tariffs on international trade, which could slow the UK economy. The Bank considered a more significant cut to 4%, reflecting concerns over the trade war's potential impacts. However, it decided on a moderate approach, noting expectations for gradual and cautious future rate adjustments as inflation pressures persist from rising household bills.
Bank governor Andrew Bailey noted that while the slowdown in inflation justified the rate cut, recent unpredictability in the global economy poses significant concerns.
The Bank of England considered a more substantial cut to 4%, reflecting worries that ongoing global trade conflicts could adversely affect economic growth.
Bailey expressed optimism about the UK leading negotiations for a tariff deal with the US, stating it would mitigate uncertainty in the economy.
Despite the cut to 4.25%, future rate adjustments by the Bank of England are likely to be "gradual and careful", reflecting divided opinions among committee members.
Collection
[
|
...
]