Bank of England cuts interest rates to 4.25 per cent in boost to businesses
Relief for homeowners as interest rates cut to lowest level in two years
- The Bank of England has reduced interest rates to 4.25 per cent, citing easing inflationary pressures.
- This marks the second rate cut this year, following a previous reduction in February, bringing rates to their lowest level since May 2023.
- While the Bank upgraded its 2025 UK economic growth forecast to 1 per cent, it warned that US President Donald Trump's tariff plans could negatively impact growth over the next three years.
- The rate cut is expected to benefit homeowners and businesses facing financial pressures, with potential mortgage payment savings and increased affordability.
- The Bank predicts further interest rate reductions, potentially reaching 3.5 per cent by the second quarter of next year, while also forecasting a rise in UK unemployment.