The Bank of England lowered its benchmark rate for the fourth time this year as inflation is expected to fall back towards the target more quickly in the near term and signaled further reductions next year. The Monetary Policy Committee, governed by Andrew Bailey, voted 5-4 to reduce the bank rate by 25 basis points to 3.75 percent, which was the lowest since early 2023. The committee observed that the restrictiveness of policy has fallen as interest rate has been reduced by 150 basis points since August 2024. "On the basis of the current evidence, Bank Rate is likely to continue on a gradual downward path," the bank said.
"But judgements around further policy easing will become a closer call," the bank added.
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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.