Bank of England cuts policy rate by 25bp
Impact of US tariffs on UK monetary policy remains unclear, MPC says
The Bank of England announced today (February 6) that it was reducing its policy rate by 25 basis points to 4.5%. The monetary policy committee (MPC) reached the decision by seven votes to two at its meeting the previous day.
The bank said it was making the cut – its third 25bp reduction in the space of six months – because inflation had been falling in response to the tighter monetary policy of recent years.
Headline inflation fell to 2.5% in December 2024, down from 2.6% in November. This was
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