Bank of England cuts interest rate to 4.5%, predicts weak UK growth of 0.75%
In the first monetary policy meeting (MPC) of 2025, the Bank of England cut interest rates to 4.5%.
Following today's Bank of England (BoE) Meeting, interest rates were cut by a quarter-point to 4.5%. The BoE, however, halved its UK growth forecasts to 0.75%, half its November forecast of 1.5%. It also warned that inflation could reach as high as 3.75% by autumn - almost twice the 2% target set by the government as households face renewed pressure from rising prices, including higher energy prices.
“It will be welcome news to many that we have been able to cut interest rates again today,” said Andrew Bailey, the Bank’s governor. “We’ll be monitoring the UK economy and global developments very closely and taking a gradual and careful approach to reducing rates further.”
Thursday’s quarter-point rate cut was the third in just over half a year, and it came amid uncertainty over global trade and the stagnating economy.
For the minutes from today’s meeting chaired by Andrew Bailey, click here.
In the first monetary policy meeting (MPC) of 2025, the Bank of England cut interest rates to 4.5%.