The Bank of England cut its key interest rate from 4.5% to 4.25% on Thursday, marking its fourth reduction in the past year.
The Bank considered a larger cut to 4%, out of concern that the global trade war could take its toll on England soon. Andrew Bailey, governor of the BoE, said he still sees potential for more cuts to come but could not predict when or by how much.
Though Thursday’s decision was expected, the nine-person Monetary Policy Committee remained divided. Five voted for the cut, two supported a cut larger than 50 basis-point, while two preferred to keep rates as is.
Thursday’s cut came a day after the U.S. Federal Reserve chose to keep rates unchanged. Analysts say the move highlights a growing divide between the Fed and its global counterparts in response to the Trump administration’s tariffs.
