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Monetary Policy Committee cuts interest rates to 4.5%

Bank of England kicks off 2025 with an interest rate cut to 4.5%

07 Feb 2025, 1 min read
  • In the first meeting of 2025, the Bank of England’s Monetary Policy Committee (MPC) cut interest rates to 4.5%, from 4.75%. Citing progress on disinflation, rates are expected to continue falling at a gradual pace this year.
  • Underperformance in economic growth in the latter half of 2024 led to the Bank downgrading its forecast for GDP growth in 2025 (to 0.75%).
  • Inflation is expected to pick up this year, peaking at 3.7% in Q3, though this is largely concentrated in higher energy bills and regulated prices. I

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