Bank of England cuts interest rates to 4.25 per cent in boost to businesses

The Bank of England is poised to cut interest rates as the threat of an escalating global trade war looms - (Aaron Chown/PA)

The Bank of England slashed interest rates to 4.25 per cent on Thursday and warned that Donald Trump’s global tariff war will hit economic growth over the next three years in the UK.

The central bank cut the UK’s base rate by 0.25 per cent following a slowdown in inflation in recent months. Following cuts in February and now May, the base rate is down from a high of 5.25 per cent to a level last seen in May 2023.