UK Economy

The Bank of England has reduced interest rates to 4.5%, the lowest since June 2023, while also cutting its 2025 UK growth forecast to 0.75%. Governor Andrew Bailey warns of a temporary inflation rise, with the economy facing stagflation risks.

The Bank of England has reduced interest rates to 4.5%, the lowest in over 18 months, and cut its growth forecast for the UK economy to 0.75% in 2025. Governor Andrew Bailey warns of a 'bumpy road ahead' due to economic uncertainty, while the rate cut offers relief to borrowers but may impact savers negatively.