THE GUARDIAN: Reduction is first since March 2020 as governor says inflationary pressures have ‘eased enough’ to enable cut
The Bank of England has cut interest rates for the first time since the start of the Covid pandemic, moving to ease the pressure on households after ratcheting up borrowing costs to combat the worst inflation shock in four decades.
In a finely balanced decision after holding borrowing costs at the highest level since the 2008 financial crisis for a year, the Bank’s monetary policy committee (MPC) voted by a narrow majority to cut its base rate by a quarter of a percentage point to 5%.
Exposing divisions within the central bank’s most senior ranks over the timing of a cut, the MPC was split by five votes to four, with the governor, Andrew Bailey, casting the deciding vote for the first reduction in borrowing costs since March 2020. » | Richard Partington, Economics correspondent | Thursday, August 1, 2024
Don’t be fooled by the interest rate cut – higher rates are here to stay: Mortgage payers and business owners vainly hope cut to 5% signals return to pre-pandemic era of cheap borrowing »
