Bank of England Cuts Rates for First Time Since Pandemic

Landmark Decision Signals Move Towards Easing Monetary Policy Amidst Inflationary Pressures

Economists Cautious on Pace of Future Cuts as Concerns Over Inflation Persist

The Bank of England (BoE) has cut interest rates from a 16-year high of 0.75% to 0.50%, marking a significant shift in monetary policy. The decision, which was reached by a narrow vote, is expected to provide some relief to businesses and consumers facing rising costs.

However, the BoE has remained cautious about when it might cut rates again, expressing concerns over the persistent threat of inflation. ING economist James Smith noted, "The BoE is not giving any guidance on when rates might be cut again."

The decision to cut rates comes as the UK economy grapples with a combination of rising inflation and the ongoing fallout from the COVID-19 pandemic. While the move is seen as a step towards easing monetary policy, economists believe that the BoE will approach future rate cuts with caution