BOE cuts interest rates by 25 basis points as expected

The Bank of England cut interest rates today, a move likely to ease the burden on borrowers, businesses, and consumers across the country.

The central bank decided to cut its key interest rate from 4.5% to 4.25% at its last monetary policy meeting, amid slowing economic growth and uncertainty related to tariffs imposed by US President Donald Trump. The cut was widely expected.

Slower inflation, which fell to 2.6% in the 12 months to March (from 2.8% the previous month), has given the Bank more room to maneuver.

This cut will be good news for many British households and businesses, as it will reduce the cost of borrowing, while savers who benefit from higher interest rates on savings accounts may be hurt.