Bank of England cuts its main interest rate to 4%, lowest level since March 2023
The decision was widely anticipated in financial markets as the bank's Monetary Policy Committee balances its responsibility to control inflation against concern that rising taxes and US President Donald Trump's global trade war may slow economic growth.
The rate cut is the bank's fifth since last August, when policy makers began to lower borrowing costs from a 16-year high of 5.25 per cent. The Bank of England's key rate — a benchmark for mortgages as well as consumer and business loans — is now at the lowest level since March 2023.
'In the meantime, speculation over potential tax rises in the Autumn Budget may keep households and companies cautious, given the uncertainty over where extra burdens may land." (AP) GSP
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August 07, 2025, 18:15 IST
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