Bank says ‘gradual approach’ to interest rate cuts needed after Budget

The Bank of England has cautioned over a ‘gradual approach’ to cutting interest rates (Aaron Chown/PA) - (PA Archive)

The Bank of England has cautioned over a “gradual approach” to cutting interest rates, as it forecast tax rises in the Budget could push inflation higher than previously thought.

The Bank’s Monetary Policy Committee (MPC) announced that rates were being reduced from 5% to 4.75% on Thursday.