Bank of England cuts interest rates by 25 basis points to 5%

First drop since 2020

The Bank of England has cut its bank rate by 25 basis points to 5%, having held rates for the longest period since the Second World War.

The rate cut call which took place today (1 August) was on a knife edge among a divided Monetary Policy Committee, with 5-4 voting in favour of the snip. This is the first time the UK's central bank has trimmed its bank rate since the early days of the pandemic in March 2020, with some of the more hawkish MPC members having voted for a cut in previous meetings. "Despite concerns over persistent underlying inflation pressures, the decision to ease policy reflects the UK's fragile growth trajectory, driven by the significant squeeze on consumers and businesses," said James Carter, portf...