Bank of England Slashes Interest Rates Amid Economic Uncertainty
The Bank of England cut its main interest rate to 4% in an effort to support the UK economy. This move, the fifth rate cut since August, is in response to slow growth influenced by tax rises and global trade tensions. The decision aims to boost confidence among consumers and businesses.
- Country:
- United Kingdom
The Bank of England on Thursday reduced its primary interest rate by a quarter percentage point to 4% as policymakers strive to support the faltering UK economy.
This move was expected by financial markets, as the Monetary Policy Committee navigates between controlling inflation and concerns over economic slowdown due to rising taxes and the global trade war led by US President Donald Trump.
This recent rate cut marks the fifth one since last August, bringing down borrowing costs from a 16-year high of 5.25%. Now at the lowest rate since March 2023, it aims to stimulate consumer and business confidence. However, uncertainties regarding potential tax increases in the Autumn Budget continue to cast shadows.
(With inputs from agencies.)
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