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BoE Expected to Cut Rates Amid Global Economic Uncertainty

The Bank of England (BoE) is predicted to cut interest rates by 0.25% at its Monetary Policy Committee (MPC) meeting. This would be the fourth successive rate cut since August 2024, decreasing the key rate to 4.25%. This is influenced by concerns of international trade dangers, easing inflation, and necessity to stimulate economic growth. The news will be revealed at 12:02 BST, following a two-minute silence to remember VE Day.

Rate easing is mainly an outcome of recent tariffs by US President Donald Trump, which added to the pressure about global expansion. The British inflation of March at 2.6% is close to the BoE's 2% target, allowing policymakers with more room for cutting rates. The BoE aims to remove these concerns and create economic development by lowering business and individuals' cost of borrowing.

Going forward, markets anticipate further rate cuts by the BoE, some of which even predict the rate to fall as low as 3.5% by 2025-end. The BoE will continue to be on its guard, watching closely economic developments and fine-tuning policy in response. The MPC choice will be accompanied by updated economic projections and a press conference from Governor Andrew Bailey

 

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