2024-08-01 14:59:08
Economy
Finance
Banking

Bank of England Cuts Interest Rates in Cautious Move

The Bank of England has made its first interest rate cut since 2020, lowering rates to 5%. This decision comes as the bank expects the economy to grow at a modest 0.25% in the coming months, but warns of rising unemployment.

The rate cut is a cautious move in contrast to the European Central Bank's approach, as major central banks navigate persistent inflationary pressures. Despite the cut, the Bank of England anticipates rates reaching 3.5% by 2025, well above pre-Covid levels.

The decision to cut rates was a narrow one, with a 5 to 4 vote in the monetary policy committee. The bank's chief economist acknowledges the challenges posed by inflation, even as the jobs market cools in retail and hospitality.

The interest rate cut is expected to have an impact on borrowers, with reduced monthly payments for tracker mortgage and standard variable rate customers. However, savings rates are likely to be reduced, and credit card rates are not directly tied to the base rate.

The Bank of England's decision may also have implications for Bitcoin, with potential boosts to its price following the rate cut. Overall, the bank is taking cautious steps to balance inflation and economic growth.

The Guardian
1. August 2024 um 17:45

Bank of England cuts interest rates to 5% in narrow vote

Economy
Finance
Politics
The Bank expects the economy to grow at 0.25% in coming months, warning of rising unemployment, even as it cuts rates from the restrictive levels needed to tackle high inflation.
New York Times - Business
1. August 2024 um 18:12

Bank of England Cuts Interest Rates for First Time Since 2020

Economy
Finance
The Bank of England, led by Governor Andrew Bailey, cut rates by 0.25 percentage points to 5%, the first cut since 2020. This cautious easing contrasts with the European Central Bank's approach, as major central banks navigate persistent inflationary pressures.
AFP
1. August 2024 um 11:55

Bank of England cuts key interest rate for the first time since the pandemic

Finance
Economy
Politics
The Bank of England has cut its key interest rate by 0.25 percentage points to 5.0% for the first time since the pandemic. In the UK, inflation stood at 2.0% in June, lower than in the eurozone. The European Central Bank and other central banks are also beginning to cut interest rates.
The Guardian
1. August 2024 um 06:44

Bank of England braced for knife-edge interest rate decision

Economy
Finance
Politics
The Bank of England's chief economist Huw Pill warns of persistent inflationary pressures, even as the jobs market cools in retail and hospitality, complicating the decision on a potential 0.25% rate cut.
CW

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