Bank of England cuts interest rates by 25 basis points to 5%

The rate cut call which took place today (1 August) was on a knife edge among a divided Monetary Policy Committee, with 5-4 voting in favour of the snip. This is the first time the UK's central bank has trimmed its bank rate since the early days of the pandemic in March 2020, with some of the more hawkish MPC members having voted for a cut in previous meetings. Following news about the rate cut, UK Chancellor Rachel Reeves said BoE's move represented "welcome news" for "millions of families" who are "still facing higher mortgage rates after the mini-budget". "That is why this gover...