The English Bank reduced the interest rates for a quarter point at 4 percent, facing weak growth, persistently high inflation and oversight in global trade.
The decision, which is in accordance with market expectations, is the fifth of such a move since the Bank of England began to reduce borrowing costs after the pandemic.
The pound strengthened after the decision, it rose by 0.4 percent compared to the dollar to $ 1,341.
The decision of the Committee on Monetary Policy, published on Thursday, comes at a time when inflation in the UK is at many higher levels than in the US or eurozone, while growth slows down, seebiz.
The combination caused fears so that the UK could enter the “stagflation” period.
The Bank of England is also struggling with the high tariffs of the US President Donald Trump, who came into force for dozens of trade partners on Thursday morning. However, the United Kingdom is spared the strictest levies, by securing a rate of 10 percent.
