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.
by Renju Jaya
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