The Bank of England has reduced its main interest rate by 25 basis points to 4.25%, responding to mounting concerns about the global economic impact of U.S. tariff policies.
The move, anticipated by many economists, was announced on Thursday following a two-minute delay to observe a silence for Victory in Europe Day.
The rate cut precedes a pending trade agreement between the U.S. and the UK, which is expected to ease the effects of the tariffs imposed under President Donald Trump’s administration.
Trump posted on his Truth Social platform that a deal, due to be announced at 10am EDT (2pm GMT), will be a “full and comprehensive one that will cement the relationship between the United States and the United Kingdom for many years to come”.
