Bank of England cuts interest rate to 4 pct, lowest in over 2 years
The Bank of England (BoE) announced on Thursday a cut to its benchmark interest rate from 4.25 percent to 4 percent, the lowest level in more than two years, to boost the weakening British economy, Xinhua reports.
The BoE's Monetary Policy Committee voted 5-4 in favour of the quarter-point reduction. Among the five members advocating the cut, four preferred a 0.25 percentage point reduction, and one preferred a 0.5 percentage point reduction. While the other four members preferred to hold the bank rate at 4.25 percent.
This move marked the BoE's third rate cut this year, and the fifth cut since August 2024, down from a recent peak of 5.25 percent.
"Underlying UK GDP growth has remained subdued, consistent with a continued, gradual loosening in the labour market," said the bank in a statement, noting that a margin of slack has emerged in the economy. Downside domestic and geopolitical risks around economic activity remain, it added.
British Chancellor of the Exchequer Rachel Reeves welcomed the rate cut. She posted on social media that the cut brings down the cost of mortgages and loans across the UK. "By bringing stability back to the country's finances we're putting more money in people's pockets," she noted.
As reported earlier, Egypt's net international reserves reached more than 49 billion US dollars at the end of July 2025.