Bank of England Cuts Rates, Reflecting Global Trade Uncertainty

The Bank of England (BoE) lowered its benchmark interest rate by 0.25 percentage points to 4.25%, marking the first rate cut this year amidst growing concerns about global trade tensions sparked by US tariffs. This adjustment, determined by the Monetary Policy Committee (MPC), follows a string of three previous cuts since August 2024. The MPC anticipates a slower UK economy with an additional 0.3% contraction over the next three years, in addition to earlier projections made in this year’s forecasts. 0.25-point reduction reflects the uncertainty surrounding US trade policy and lingering economic challenges within the UK.