US EditionBank of England lowers UK interest rates to 4.25% in second cut this year
- On Thursday, the Bank of England lowered its benchmark borrowing cost by a quarter percentage point, bringing it down to 4.25% following a meeting in London.
- The cut responds to easing inflation pressures and heightened uncertainty from US tariffs and global trade tensions announced since early April.
- The Monetary Policy Committee voted 5-4 for the quarter-point cut, including two members favoring a larger half-point cut and two wanting rates held steady.
- Governor Andrew Bailey described the decision as positive overall, benefiting the UK economy, and emphasized the importance of proceeding with further rate cuts cautiously and incrementally.
- The rate cut aims to support UK growth amid trade uncertainties, with forecasts now expecting 1% GDP growth this year and inflation returning to target by 2027.
154 Articles
154 Articles
Bank of England cuts interest rate by quarter of a percentage point
The Bank of England cut its main interest rate by a quarter of a percentage point to 4.25pc amid concerns over the potential shock to global growth emanating from the tariff policies of the Trump administration.
Economists Blast Bank of England Rate Cut as Too Small — While U.S. Fed Won’t Slash Rates at All.
PULSE POINTS:What Happened: The Bank of England reduced its base interest rate from 4.5 percent to 4.25 percent. Who’s Involved: The Bank of England, economist Patrick Minford, U.S. President Donald J. Trump, and the United States Federal Reserve. Where & When: Thursday, May 8, 2025, in the United Kingdom. Key Quote: “I would have welcomed more [of a cut to base rates] actually… At the moment, the priority is to try and stop the recession gather…
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