The Fort Worth Press - Bank of England cuts interest rate as inflation slows

USD -
AED 3.673046
AFN 68.277906
ALL 91.263868
AMD 387.230439
ANG 1.801743
AOA 912.497197
ARS 994.250168
AUD 1.496267
AWG 1.8
AZN 1.697336
BAM 1.817354
BBD 2.018528
BDT 119.468862
BGN 1.808802
BHD 0.376945
BIF 2951.189824
BMD 1
BND 1.326309
BOB 6.932597
BRL 5.655973
BSD 0.99974
BTN 84.352642
BWP 13.347643
BYN 3.271727
BYR 19600
BZD 2.015108
CAD 1.386175
CDF 2867.999762
CHF 0.87268
CLF 0.034725
CLP 958.203552
CNY 7.143302
CNH 7.119295
COP 4375.14
CRC 510.778666
CUC 1
CUP 26.5
CVE 102.459626
CZK 23.376971
DJF 178.021222
DKK 6.89587
DOP 60.100912
DZD 133.440914
EGP 49.267298
ERN 15
ETB 123.063128
EUR 0.924605
FJD 2.237196
FKP 0.765169
GBP 0.769575
GEL 2.724948
GGP 0.765169
GHS 16.395347
GIP 0.765169
GMD 71.499
GNF 8619.375941
GTQ 7.715252
GYD 209.148687
HKD 7.77163
HNL 25.221383
HRK 6.88903
HTG 131.519527
HUF 374.029859
IDR 15602.75
ILS 3.717265
IMP 0.765169
INR 84.30115
IQD 1309.632218
IRR 42104.99989
ISK 137.129678
JEP 0.765169
JMD 158.217027
JOD 0.709298
JPY 153.241986
KES 128.969946
KGS 86.200463
KHR 4061.437253
KMF 458.625015
KPW 899.999774
KRW 1384.265001
KWD 0.30666
KYD 0.833101
KZT 491.386519
LAK 21942.539629
LBP 89523.331661
LKR 292.514542
LRD 189.942577
LSL 17.476177
LTL 2.95274
LVL 0.60489
LYD 4.843985
MAD 9.887008
MDL 17.92942
MGA 4610.58148
MKD 56.896472
MMK 3247.960992
MNT 3398.000028
MOP 8.003196
MRU 39.829583
MUR 46.449606
MVR 15.394136
MWK 1733.474568
MXN 19.792285
MYR 4.403502
MZN 63.904948
NAD 17.476259
NGN 1674.690408
NIO 36.787184
NOK 10.839735
NPR 134.964041
NZD 1.65787
OMR 0.384989
PAB 0.999703
PEN 3.778701
PGK 4.01234
PHP 58.375034
PKR 277.850101
PLN 3.99025
PYG 7759.782195
QAR 3.643721
RON 4.601698
RSD 108.186991
RUB 97.986858
RWF 1370.073033
SAR 3.756329
SBD 8.333912
SCR 14.545792
SDG 601.498806
SEK 10.696245
SGD 1.319655
SHP 0.765169
SLE 22.697036
SLL 20969.496802
SOS 571.351582
SRD 34.955037
STD 20697.981008
SVC 8.747607
SYP 2512.530268
SZL 17.470568
THB 33.981498
TJS 10.626824
TMT 3.51
TND 3.111068
TOP 2.342102
TRY 34.250201
TTD 6.781204
TWD 32.143498
TZS 2690.000255
UAH 41.331747
UGX 3669.460499
UYU 41.563679
UZS 12805.419143
VEF 3622552.534434
VES 43.727778
VND 25365
VUV 118.722039
WST 2.801184
XAF 609.500846
XAG 0.029645
XAU 0.000367
XCD 2.70255
XDR 0.749568
XOF 609.5235
XPF 110.816863
YER 249.824982
ZAR 17.282296
ZMK 9001.202763
ZMW 27.092044
ZWL 321.999592
  • RBGPF

    2.1700

    63.17

    +3.44%

  • CMSC

    0.1200

    24.63

    +0.49%

  • RELX

    -0.2100

    47.5

    -0.44%

  • SCS

    0.0200

    13.08

    +0.15%

  • GSK

    0.4250

    36.325

    +1.17%

  • NGG

    0.2100

    64.33

    +0.33%

  • VOD

    -0.0010

    9.309

    -0.01%

  • RYCEF

    -0.1800

    7.2

    -2.5%

  • RIO

    2.2700

    67.6

    +3.36%

  • AZN

    0.1400

    63.99

    +0.22%

  • BCC

    -0.0150

    141.745

    -0.01%

  • BTI

    -0.1400

    35.5

    -0.39%

  • JRI

    0.0250

    13.275

    +0.19%

  • CMSD

    0.1690

    25.019

    +0.68%

  • BCE

    -1.1000

    27.64

    -3.98%

  • BP

    0.0300

    30.19

    +0.1%

Bank of England cuts interest rate as inflation slows
Bank of England cuts interest rate as inflation slows / Photo: © POOL/AFP

Bank of England cuts interest rate as inflation slows

The Bank of England on Thursday said it was cutting its key interest further after UK inflation hit a three-year low and signalled more reductions, easing pressure on borrowers.

Text size:

As widely expected, the BoE trimmed borrowing costs by 25 basis points to 4.75 percent at a regular policy meeting, its second cut since August.

The Federal Reserve is set to follow suit with US rates later in the day as inflation cools globally.

"We have been able to cut interest rates again" after UK annual inflation fell below the BoE's target, the central bank's governor Andrew Bailey said in a statement.

The Consumer Prices Index in Britain stands at 1.7 percent, the lowest level since 2021 and below the two-percent target.

"We need to make sure inflation stays close to target, so we can't cut interest rates too quickly or by too much," Bailey cautioned.

"But if the economy evolves as we expect it's likely that interest rates will continue to fall gradually from here."

- Budget impact -

The BoE said a maiden budget last week from Britain's new Labour government, featuring tax rises and increased borrowing, would boost growth but also lift inflation.

"The UK budget means that interest rates will fall a bit slower," Paul Dales, chief UK economist at Capital Economics, said following the latest rate decision and accompanying statements from the BoE.

He forecast the central bank would also carry out fewer cuts next year than had been expected ahead of the tax and spend plans unveiled by the new government led by Prime Minister Keir Starmer.

The BoE's cautionary tone Thursday about cutting too fast and by too much boosted the British pound.

Major central banks started this year to cut interest rates that had been hiked in efforts to tame inflation, which had soared following the end of Covid lockdowns and Russia's invasion of Ukraine.

Sweden's central bank slashed borrowing costs by 0.5 basis points Thursday -- its fourth this year and biggest reduction in a decade -- while Norway made no change.

- Work with Trump team -

The Fed is later expected to trim by 25 basis points in a decision unlikely to have been influenced by Donald Trump's return to power, according to analysts.

Bailey told a press conference that he and his team "look forward to working with the new US administration".

He added: "We work very closely with US administrations because it's obviously the right thing to do."

Trump is expected to kick off his second spell as president of the world's biggest economy by announcing tax cuts and import tariffs.

In August, the BoE reduced it key rate for the first time since early 2020, from a 16-year high of 5.25 percent as UK inflation returned to normal levels.

But it decided against a second reduction in a row in September. There was no October meeting.

The BoE hiked borrowing costs 14 times between late 2021 -- when they stood at a record-low 0.1 percent -- and the second half of last year.

T.Harrison--TFWP