Bank of England Cuts Interest Rate by 25 Basis Points Amid Divergence with US Fed

Published: May 9, 2025 11:06

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【Bank of England Cuts Interest Rate by 25 Basis Points】A day after the US Fed decided to keep interest rates unchanged, the Bank of England (BoE) lowered its rates, highlighting the growing divergence between the US Fed and other global central banks in responding to Trump's tariffs. The BoE's Monetary Policy Committee (MPC) reduced the interest rate from 4.5% to 4.25% on Thursday, marking the fourth rate cut in seven meetings. This move brings the overall reduction in its borrowing costs in line with that of the US. Although the BoE has been more cautious in easing policy than other European central banks, it has cleared the way for more aggressive action if the tariffs hit economic growth harder than expected. In a statement, the BoE said, "The Committee will remain sensitive to the heightened unpredictability of the economic environment.

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