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BoE Cuts Interest Rates
The Bank of England cuts interest rates to 4.75%, a move welcomed by the UK Treasury but also highlighting ongoing economic challenges.
Spanish
Spain
EconomyUkInflationGovernmentInterest RatesCurrency
Bank Of England (Boe)Uk Treasury
Rachel ReevesAndrew BaileyDonald Trump
- What are the Bank of England's economic projections?
- The BoE's revised projections forecast inflation exceeding 2% by year-end, unemployment dropping to 4.1%, and GDP growth of 1% to 1.5% by 2025. The pound sterling strengthened against both the dollar and euro following the interest rate announcement.
- What was the market reaction to the interest rate announcement?
- The decision to lower interest rates reflects a judgment by the Bank of England that reduced rates are appropriate given the current economic conditions and inflation outlook. The projected continued reduction suggests a belief that the inflation target of 2% is achievable without overly aggressive rate cuts.
- What action did the Bank of England take regarding interest rates?
- The Bank of England (BoE) lowered its interest rate from 5% to 4.75%. This decision was made by a majority vote, with only one dissenting opinion among the nine members of the monetary policy committee.
- What was the reaction of the UK Treasury Minister to the BoE's decision?
- The decrease is in line with analyst expectations and follows a previous reduction to 5% in August. The BoE governor indicated further reductions are likely, although at a more moderate pace, contingent on the impact of the Labor government's budget plans and the international economic situation.
- What factors influenced the Bank of England's decision to lower interest rates?
- UK Treasury Minister Rachel Reeves welcomed the rate cut as good news for families, but also attributed the difficult economic situation to the previous Conservative government. She highlighted the Labor government's long-term plans to address the nation's economic challenges.