The Bank of England reduced its interest rate by a quarter-point on Thursday citing progress on disinflation path.
The Monetary Policy Committee voted 7-2 to reduce the benchmark bank rate to 4.50 percent from 4.75 percent. The decision came in line with expectations.
Previously, the BoE had reduced the rate by 25 basis points each in August and November last year.
Today, Swati Dhingra and Catherine Mann called for a bigger rate cut of half percentage point.
The MPC judged that there has been sufficient progress on disinflation in domestic prices and wages to reduce Bank Rate to 4.5 percent at this meeting.
The committee said a gradual and careful approach to the further withdrawal of monetary policy restraint is appropriate.
"Monetary policy would need to continue to remain restrictive for sufficiently long until the risks to inflation returning sustainably to the 2% target in the medium term had dissipated further," the bank said.
The MPC would decide the appropriate degree of monetary policy restrictiveness at each meeting, BoE added.
For comments and feedback contact: editorial@rttnews.com
Economic News
What parts of the world are seeing the best (and worst) economic performances lately? Click here to check out our Econ Scorecard and find out! See up-to-the-moment rankings for the best and worst performers in GDP, unemployment rate, inflation and much more.
December 12, 2025 15:14 ET Central bank decisions dominated the economic news flow this week led by the Federal Reserve. Trade data from the U.S. also gained attention. The Canadian and Swiss central banks also announced their interest rate decisions. Inflation data from China was in focus as the country released the latest consumer price and producer price data.