BoE Announces Interest Rate Cut

The Bank of England's Monetary Policy Committee (MPC) has made a pivotal decision to reduce the headline bank rate by 25 basis points to 4.25%, a move that was widely anticipated by market observers.

Close Vote Reflects Divergent Views

The decision, passed by a narrow 5-4 margin, highlights the divided opinions within the MPC, with a significant minority advocating for maintaining the rate at 4.5%.

Inflation and Trade Policies in Focus

The MPC cited "substantial progress on disinflation" as a key factor enabling this gradual easing of policy restraint. However, the committee also expressed concerns over the potential global economic impact of U.S. President Donald Trump's trade policies, though it downplayed the immediate effects on the UK's economy.

Looking Ahead

With inflation expected to slow significantly in 2025, the BoE remains cautious, emphasizing the need to monitor international trade developments closely. More updates are expected as the situation evolves.