Bank of England - the central bank of the United Kingdom, has cut its key interest rate by 25 percentage points to 3.75%.
“The Monetary Policy Committee voted by a majority (5 to 4) to reduce the key interest rate by 25 percentage points to 3.75%“, the bank said in a statement. This is the first time since January 2023 that the Bank of England's key interest rate has fallen below 4%.
The interest rate was cut against the backdrop of a slowdown in inflation, which is now 3.2%. Two other factors that influenced the Bank of England's decision were the British economy contracting by 0.1% and unemployment rising to 5.1% in October.