Bank of England cuts rates for first time since 2020
MPC votes for 25bp reduction in split decision after Fed opts to hold
The Bank of England (BoE) today (August 1) lowered its bank rate by 0.25 percentage points to 5%, after the Federal Reserve held rates last night.
The decision, which resulted from a 5–4 vote on the monetary policy committee (MPC), was the BoE’s first rate cut since March 2020. The rate had remained at 5.25% since last August.
The BoE had quickly raised rates from 0.1% in December 2021 to tackle soaring inflation in the largest sequential increase since the late 1980s. Headline inflation peaked
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