England bank reduces interest rates by quarter by 4%

The Bank of England reduced the interest rates from 4.25% to 4% to 4% to facilitate the money that the central bank describes money “gradually and careful”.

A lot of BOE expected the rates from 25 points to the meeting of his latest policy, but traders and economists were enthusiastic to break the protection of the decision among the bank politicians.

On Thursday, a number of nine MPCs voted 5-4 to reduce the key interest rate, instead of the “bank rate”, instead of holding 25 points. The British Libra rose by 0.5% against the decision against the dollar, $ 1,3424.

Politics managers had to weigh the sticky inflation – Consumer price index (CPI) in June 3.6% hotter From 3.4% in May – Cooling job market and poor growth. Gross domestic product in the UK hired a month of 0.1% in May.

In a statement ThursdayThe bank said MPC “focused on tightening any durable inflationary pressure, returning inflation in a sustainable term.”

MPC initially wanted to reduce interest rates with four members who wanted to have rates, four other voting and a police vote for a larger base vote. Then the Commission made a second vote for the majority decision to reduce the rates of 25 points.

Due to the “balanced state of” vote, MPC is currently in terms of the factors driven by monetary policy, according to Andrew Bailey.

“There is a risk of inflation, and in particular, this current increase can last slightly more than expected. We don’t really expect, but can we expect it?” Bailey told CNBC’s Ritika Gupta in an interview. “But … it must be established in the context of labor market conditions that are smoothing.”

Despite the diverging views of the BOE politicians, the downward route expects the interest rate to continue next year, but the central bank confirmed his vision caution, “Increasing the reduction in monetary policy, I.e.

The rhythm of future reductions and rhythm of the policy is facilitated according to the pressures of disinflationary disinhatting, BOE said.

Bailey said that the most important thing “is important” that we don’t cut too much or too much bank rate, “but it added” that there are good reasons that this increase in the heading inflation doesn’t last. “

Rachel Reeves Kantziller kingdom said the fifth grade cutting of the last general election of July 2024 to help reduce the cost of loans for families and businesses. “

Schroders George Brown, in Schroders, said the final cut rate did not surprise, but said “The path forward is everything.”

“Jobs, growth and inflations are all calls for different policy prescriptions, if you need to make two unpredictable voting for a majority,” said in Thursday in emails.

“Seeing the uncertainty presented by the conflict data, he said:” About the labor market “.

Some economists believe that the central bank could go beyond.

“Despite the unexpected rise in CPI inflation in June, it still means weaknesses in the labor market.

“The Bank of England will reduce interest rates from 4.25% to 3.00%, which will take rates below 3.50% in financial markets,” said Wednesday.