London, Aug 7 (AP) The Bank of England has cut its main interest rate by a quarter percentage point to 4 per cent Thursday, as policy makers seek to bolster the sluggish UK economy.
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.
“There will be hopes that if loans become cheaper, it will help boost consumer and business confidence but there’s a long way to go,” Susannah Streeter, head of money and markets at Hargreaves Lansdown, said before the decision.
“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
