The Bank of England cuts its main interest rate by a quarter point to 4.25%.
May 8, 202587 ViewsRead Time: 1 minutes
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The Bank of England announced today, Thursday, a reduction of the main interest rate by a quarter of a percentage point to 4.25%, amid concerns about potential shocks that global growth may face due to the tariff policies pursued by President Donald Trump's administration.
Five members of the Monetary Policy Committee of the Bank of England voted in favor of a quarter-point reduction, while two called for a larger half-point reduction. Two others voted to keep interest rates unchanged.
The committee maintained its guidance that interest rate easing should continue "gradually and cautiously" in light of the economic fluctuations caused by the comprehensive tariffs imposed by Trump.
Governor Andrew Bailey said in a statement accompanying the decision: "Inflationary pressures continued to ease, so we were able to cut interest rates again today."
He added: "The past few weeks have shown the extent of global economic volatility. For this reason, we must commit to a gradual and cautious approach."
This decision comes ahead of a trade agreement between the United States and the United Kingdom, which is likely to ease the impact of the extensive tariffs imposed by President Donald Trump.
Five members of the Monetary Policy Committee of the Bank of England voted in favor of a quarter-point reduction, while two called for a larger half-point reduction. Two others voted to keep interest rates unchanged.
The committee maintained its guidance that interest rate easing should continue "gradually and cautiously" in light of the economic fluctuations caused by the comprehensive tariffs imposed by Trump.
Governor Andrew Bailey said in a statement accompanying the decision: "Inflationary pressures continued to ease, so we were able to cut interest rates again today."
He added: "The past few weeks have shown the extent of global economic volatility. For this reason, we must commit to a gradual and cautious approach."
This decision comes ahead of a trade agreement between the United States and the United Kingdom, which is likely to ease the impact of the extensive tariffs imposed by President Donald Trump.
