UK interest rates fall to 4.25% as Bank of England announces a quarter-point cut

The widely expected cut by the MPC, its fourth cut since last August, should lead to cheaper mortgages for homeowners. Photograph: Maureen McLean/Rex/Shutterstock

Bank of England policymakers have cut interest rates by a quarter point to 4.25% to cushion the UK economy against the impact of rising economic uncertainty.

The widely expected move from the Bank’s monetary policy committee (MPC), its fourth cut since last August, also carried a warning that the UK economy would slow by a further 0.3% over the next three years in addition to dramatic cuts to its forecasts made earlier this year.