The Bank of England has reduced interest rates by a quarter point to 4.25% as a response to the economic challenges posed by Donald Trump's trade war. This move is aimed at cushioning the UK economy, amid signs of weakening consumer and business confidence. It's the fourth rate cut since August and is expected to make mortgages cheaper for homeowners. Additionally, policymakers are monitoring the effects of a recent increase in employer national insurance contributions on businesses while they anticipate rising inflation rates.
Bank of England policymakers have cut interest rates by a quarter point to 4.25% to cushion the UK economy against the impact of Donald Trump's trade war.
Surveys suggest consumer and business confidence is weakening, prompting this widely expected move from the Bank's monetary policy committee as cheaper mortgages for homeowners should follow.
Even if the UK secures a carve-out, the country would still be affected by the global slowdown expected to result from the trade war.
The Bank's rate-setters are assessing how the increase in employer national insurance contributions is affecting businesses during this critical economic period.
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