Interest rates reduced to 5%

The Bank of England's Monetary Policy Committee (MPC) has cut interest rates by 25 basis points in an...

The Bank of England’s Monetary Policy Committee (MPC) has cut interest rates by 25 basis points in an bid to reduce inflation rates. This brings the base rate to 5%. In a statement, the MPC said it expects inflation to rise further this year after an increase to 2.5% in February to reflect higher energy and food prices as well as the recent depreciation of the Sterling on import costs. “Even if commodity prices remain at their current high levels, inflation should fall back. But to ensure that inflation meets the 2% target in the medium term, the Committee needs to balance two risks. ...