UK, cuts base rate to 3.75% by 0.2 percentage points…lowest in 2 years and 10 months
Summary
- The Bank of England said it would cut the base rate from 4.0% to 3.75% by 0.25 percentage points.
- This rate cut is the lowest in 2 years and 10 months and is the sixth rate cut since August last year.
- This decision, which matches market experts' forecasts, was made with five MPC members voting for the cut and four supporting holding rates.
The Bank of England (BoE), the UK central bank, cut the base rate by 0.25% percentage points.
The Bank of England said on the 18th (local time) after a Monetary Policy Committee (MPC) meeting that it would cut the base rate to 3.75% from 4.0% by 0.25% percentage points. This is the sixth rate cut since August last year. Five MPC members voted in favor of the cut, and four supported holding rates steady.
The base rate of 3.75% is the lowest level in 2 years and 10 months since early 2023. The Bank of England raised rates from 3.5% to 4.0% at the MPC in February 2023.
The 0.25% percentage point rate cut aligns with market experts' forecasts. According to a Reuters survey last week, experts expected the Bank of England to cut rates by a 5-to-4 vote at this MPC.
Earlier, the Bank of England held rates steady at last month's MPC. At that time, five MPC members supported holding rates, and four supported a 0.25% percentage point cut.
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul
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