The Bank of England has announced that UK’s base rate will be cut from its 16-year high of 5.25 per cent to five per cent
Interest rates have risen substantially over the past two years as the central bank has attempted to rein in inflation to its desired two per cent target.
The Bank’s Monetary Policy Committee voted to slash the base rate at its current level after this target for the consumer price index (CPI) being reached.
During the meeting earlier today, the MPC voted by a majority of five-to-four to reduce interest by 0.25 percentage points.
However, four members of the group voted to maintain bank rate at 5.25 per cent.
Prior to the Bank’s announcement, analysts had said the committee’s vote was on a “knife edge” due to contrasting opinions between the members.
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The central bank has been hesitant to slash rates up until this point
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