The Bank of England reduced its benchmark rate for the second time this year citing continued progress in disinflation but suggested that further easing is set to be gradual as the last week's budget has upward impact on inflation.
The Monetary Policy Committee decided to lower the rate by 25 basis points to 4.75 percent. The outcome of the two-day meeting matched expectations.
Previously, the U.K. central bank had reduced the policy rate by a quarter-point in August, which was the first reduction since March 2020.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.