🔺 BREAKING: Bank of England cuts UK interest rates to 4.5%

https://www.thetimes.com/business-money/economics/article/interest-rates-uk-news-bank-england-latest-february-2025-zldg9b3qd?utm_medium=Social&utm_source=Reddit#Echobox=1738844277

Posted by TimesandSundayTimes

12 comments

  1. The Bank of England has cut interest rates for the third time in six months amid mounting concerns about the UK economy, with some officials calling for a larger rate reduction despite a looming near-term surge in inflation.

    The Bank of England’s monetary policy committee (MPC), the nine member panel that sets the level of UK base rate, voted 7-2 in favour of lowering borrowing costs by 0.25 percentage points to 4.5 per cent from 4.75 per cent.

    Two members of the committee elected for a larger 0.5 percentage point reduction in response to downbeat consumer spending and restrictive financial conditions.

    The cut in borrowing costs, alongside calls for a steeper fall, is set to benefit homeowners and prospective property buyers by pushing down mortgage rates in the coming days

    🔗 If you would like to read more, click the link

  2. Tldr people are not spending enough money to grow the economy so banks are worried

  4. Maybe I’m completely wrong about this – someone far more financially literate can correct me – but wouldn’t we be expecting the knock-on effect of Trump’s tariffs hike be more inflation and a corresponding rise in the cost of borrowing? So is this a pre-emptive move? Otherwise, what the logic here?

  5. Bank of England a few years ago: “accept that you’re poorer
    people: ok – we’ll stop spending
    BoE: *surprised Pikachu face*

  6. For fixed rate mortgages, does this mean anything? From what I read, tracker mortgages follow BoE rates but fixed rates may not have a direct effect? I got incredibly happy that maybe I will get a cheaper mortgage rate but, I guess not? 🙁

  7. If the wealth wasn’t hoarded by the few, then it would be in circulation amongst the many. But now we find ourselves in a situation where *everyone* feels they must hoard.

  9. Sorry BoE, I’m not wealthy enough to have a mortgage so it will make little difference to me, won’t be spending any more on non-essentials than before.and I’m not alone in that.

  10. Fun.

    Inflation was never under control. But the economy is faulting to the point they are pressured to cut rates anyway.

    This is really bad and the general public doesn’t have any idea why.

    The system is on fire my friends, and it will collapse. Fiat currency was always doomed to fail.

  11. In the last few years I’ve watched everything double or triple in price. My wage has, in a large part, remained the same.

    You want people to go out shopping either lower the prices back to their original price before the pandemic (which we know won’t happen.) Or find a way of paying British people more.

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