Bank of England cuts interest rate for first time in more than four years
manchestereveningnews.co.ukThe Bank of England has decided to cut interest rates for the first time in more than four years. The central bank announced on Thursday that the base rate will go down from 5.25 per cent to 5 per cent.
It's the first reduction since March 2020 and the onset of the Covid pandemic. It means that while rates remain elevated, mortgage costs could start to come down further while savings rates offered by banks could be reduced. READ MORE: DWP payments, money changes and cost of living announcements in August Policymakers were split on the decision, with some members of the Monetary Policy Committee (MPC) voting to keep the level unchanged.
The UK’s base rate had been held at 5.25 per cent - the highest level since 2008 - since August last year. Five committee members voted in favour of cutting rates and four voted to keep them unchanged.
Governor Andrew Bailey, who voted for a cut, said "inflationary pressures have eased enough that we’ve been able to cut interest rates today".
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