Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Bank of England trims rates again to 4.5% as economic growth falters

by February 6, 2025
February 6, 2025
Bank of England trims rates again to 4.5% as economic growth falters

The Bank of England has reduced its base rate to 4.5 per cent — the third such cut in six months — as policymakers seek to shore up Britain’s weakening economy.

In a 7-2 vote, the nine-member monetary policy committee opted for a 0.25 percentage point drop, though two members advocated a sharper 0.5 percentage point reduction. Governor Andrew Bailey called the move “welcome news” for borrowers, while stressing that the Bank will continue to strike a “gradual and careful approach” to any further cuts.

Although inflation sits at a more moderate 2.5 per cent, the central bank warned that the headline rate will rise temporarily to around 3.7 per cent this summer, due in part to higher energy bills and increased employer National Insurance contributions taking effect in April. Despite that near-term inflation bump, the Bank’s latest forecasts suggest the UK will narrowly avoid a technical recession as GDP inches back into positive territory in early 2025. However, it now expects inflation to stay above its 2 per cent target until late 2027.

The rate cut comes against a backdrop of global economic uncertainty, notably US President Donald Trump’s expansion of import tariffs on countries such as China, Canada and Mexico. While the resulting trade tensions could raise costs worldwide, Bank officials say the immediate impact on UK price levels remains “highly uncertain”. A key factor influencing future rate decisions could be wage growth, which some policymakers fear could reignite inflation if it outpaces productivity.

Financial markets had already priced in the likelihood of a 0.25 percentage point cut, pushing the FTSE 100 to a record high above 8,700 points and nudging sterling lower against the dollar. Homeowners and prospective buyers may see mortgage rates come down in the wake of the decision, but the Bank’s slower pace of cuts contrasts with more aggressive moves seen during previous downturns. In a sign of greater caution, the Bank also revised down its UK growth forecast for 2025 to 0.75 per cent, warning that escalating trade conflicts, falling consumer confidence and looming domestic tax rises could all weigh on the recovery.

Read more:
Bank of England trims rates again to 4.5% as economic growth falters

0
FacebookTwitterGoogle +Pinterest
previous post
The Four Day Work Week: A Game Changer or Just a Trend?
next post
‘De-Globalization’ Still Isn’t Happening (At Least Not Yet)

You may also like

Social media creators to eclipse traditional media in...

June 10, 2025

How Microplate Readers help Us live Better

September 13, 2023

10 tips to become a successful entrepreneur

March 21, 2023

Wealth Club members invest £1 million under EIS...

August 26, 2022

Bank of England cuts interest rates to 5%...

August 1, 2024

Aston University’s Vice-Chancellor tells Birmingham Tech Week diversity...

October 24, 2023

Marketing Lessons from Successful Local Dating Sites

December 13, 2024

Sunak scraps Truss’s Energy Supply Taskforce after just...

December 19, 2022

CBI is no longer relevant in its current...

April 14, 2023

Red Sea Shipping Disruption Sends Ripples Through UK...

February 26, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Why Transparency and Trust Are Crucial for UK FX Brokers in 2025

      August 7, 2025
    • Smarter Condo Communities Start with Better Finances and Better Software

      August 7, 2025
    • 3 Smart Ways UK Entrepreneurs Can Diversify Their Income

      August 7, 2025
    • “YouTube is future-proofing itself”: leading producer backs AI crackdown to protect creative jobs

      August 7, 2025
    • Horizon victim Lee Castleton sues Post Office and Fujitsu for £4.5m in landmark legal claim

      August 7, 2025
    • Bank of England expected to cut interest rates to 4% amid weakening UK economy

      August 7, 2025

    Categories

    • Business (8,701)
    • Investing (2,179)
    • Politics (16,329)
    • Stocks (3,228)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved