Bank of England Cuts Rate to 4%, Impacting Borrowing Costs and Consumer Confidence

The Bank of England has lowered its benchmark interest rate to 4% in August 2025, aiming to alleviate borrowing costs for consumers and businesses. This move follows a period of economic uncertainty marked by high inflation and labor market challenges, impacting consumer confidence. While the rate cut offers potential benefits for industries like utilities and REITs seeking income-generating assets, it could also reduce returns for savers. Despite this, modest improvements in consumer sentiment on personal finances suggest a degree of economic relaxation following the decision. ]