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The Guardian - UK
The Guardian - UK
Business
Richard Partington Economics correspondent

Bank of England cuts interest rates to 5% in first reduction since March 2020

A person walks past the Bank of England
Andrew Bailey said savers and borrowers should not expect large reductions over the coming months amid concerns about lingering risks to the economy. Photograph: Hollie Adams/Reuters

The Bank of England has cut interest rates for the first time in four and a half years, easing pressure on households after it raised borrowing costs to the highest level since the 2008 financial crisis in response to soaring inflation.

In a finely balanced decision after the worst inflation shock in decades, the Bank’s monetary policy committee (MPC) voted by a narrow majority to cut its base rate by a quarter of a percentage point to 5%.

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