BoE adopts 'dovish tilt' in interest rate cut amid inflationary concerns ahead

Following 25bps cut

Rate setters at the Bank of England have taken the market by surprise in their tilt towards more dovish monetary policy as economists and investors began to digest the Bank’s 25 bps cut today (6 February).

Seven Monetary Policy Committee (MPC) members voted in favour of the interest rate cut, while two preferred a 50 bps snip, as the UK's central bank cited "substantial progress on disinflation" as a key factor behind the decision.  As a result, interest rates have now been lowered from 4.75% to 4.5%, marking a 20-month low for interest rates and the third cut in just over six months.  Bank of England slashes interest rates by 25bps to lowest level in 18 months However, markets were taken by surprise after Catherine Mann, who has repeatedly voted against lowering interest rates in re...