06.02.2025 15:31
The Bank of England made a 25 basis point interest rate cut in line with expectations. The Bank of England reduced the policy interest rate by 25 basis points to 4.50%, in line with expectations.
The Bank of England (BoE) announced its interest rate decision for January. The BoE reduced the policy rate by a quarter point from 4.75% to 4.50%. The market expectation was also for a quarter-point cut.
The bank had released the interest rate in December; in November, it had made a 25 basis point cut for the second time since 2020. In its statement, the BoE noted that forecasts continued to indicate one or two more interest rate cuts in 2025.
THE BANK LOWERED GROWTH FORECAST
The BoE lowered its 2025 growth forecast from 1.5% to 0.75%. It is estimated that the UK economy contracted by 0.1% in the fourth quarter of 2024. The Bank of England noted that inflation peaked at 3.7% during the summer months.