Bank of England Announces 1st Interest Rate Cut Since March 2020

The Bank of England (BoE) has announced the first interest rate cut in more than four years, a decision that was prompted by easing inflationary pressures. The outcome of the Monetary Policy Committee (MPC) meeting on Thursday saw interest rates slashed from 5.25 to 5 percent. Five MPC members felt that a reduction 0.25 percentage points was appropriate, while four members preferred the rate to remain unchanged. This is the first drop since March 2020 and the first change from the 5.25 percent rate, held since August last year. BoE Governor Andrew Bailey said that the decision to cut rates was “finely balanced” and comes amid inflation staying on the bank’s 2 percent target for two consecutive months....