Particle.news
Download on the App Store
68 ARTICLES
·
2w ago

Bank of England Cuts Base Rate to 4% After Split MPC Vote

Governor Andrew Bailey said further rate cuts must be gradual because inflation remains above the Bank’s 2% target.

Image
Image
FILE - A general view of the Bank of England in the City of London, March 17, 2022. (AP Photo/Alastair Grant, File)

Overview

  • The Monetary Policy Committee voted 5-4 to reduce the base rate by 0.25 percentage points to 4%, its lowest level since early 2023.
  • The decision went to a second ballot for the first time after an initial 4-4 split and one call for a 0.5 point reduction.
  • Policymakers cited a slowing labour market and back-to-back GDP contractions in April and May as reasons to ease borrowing costs.
  • Variable and tracker mortgage holders will benefit from lower repayments, while easy-access savings rates are expected to decline further.
  • Financial markets and the IMF anticipate two additional quarter-point cuts before year-end as the Bank balances growth support with high inflation.