In BoE's view, the stock valuations in the US are similar to the levels seen around the peak of the dotcom bubble on some parameters, with US bonds vulnerable to a weakening of the Fed's credibility.
The decision widely expected by markets followed a regular policy meeting and came one day after the US Federal Reserve cut its benchmark borrowing costs for the first time in 2025
Economists surveyed by Bloomberg unanimously expect the Monetary Policy Committee to leave rates on hold on Thursday
The standoff over Fed policy, pitting Trump’s strident calls for lower borrowing costs against Chair Jerome Powell’s concerns about tariff-driven inflation, hangs over the meeting
The Bank of England cut interest rates but four of its nine policymakers - worried about high inflation - sought to keep borrowing costs on hold.
The central bank's decision, widely expected by analysts, came one day after the US Federal Reserve maintained its benchmark borrowing costs unchanged, citing concerns over high inflation and slowing growth in the world's biggest economy
'Prospects for global growth have weakened as a result of... tariff announcements,' the BoE said in statement following a regular meeting.
The announcement comes one day after the US Federal Reserve and Bank of Japan held borrowing costs steady, while earlier Thursday Switzerland's central bank cut rates
Raise the cost of borrowing securities to curb leverage in repo markets
The Office for National Statistics said inflation, as measured by the consumer prices index, rose to 3 per cent in the year to January, up from the equivalent 2.5 per cent rate the month before.
Bank of England Governor Andrew Bailey said the BoE would be 'monitoring the UK economy and global developments very closely and taking a gradual and careful approach to reducing rates further'
Most economists think the nine-member Monetary Policy Committee will lower the bank’s main interest rate by a quarter of a percentage point to 4.50%, taking it to its lowest level since mid-2023.
MPC members who backed keeping rates on hold said it remained "particularly uncertain" whether these higher costs would be passed on to consumers through higher prices or lead to job losses and slower pay growth.
The increase, which took inflation further away from the Bank of England’s target of 2%, was in line with market expectations.
While the BoE downgraded its forecast for average economic growth this year to 1% from 1.25%, reflecting recent revisions to past growth, it raised its forecast for 2025 to 1.5% from 1%.
The Central bank holds a total of 855 tonnes of gold, out of which around 510.5 tonnes are held inside the country
But the next move probably won’t come until November
From the Bank of England's rate cut and Amazon's revenue slip to Apple's earnings beat and Intel's stock dive, here's a look at recent business developments around the world.
In a tight 5-4 vote, BoE policymakers agreed to reduce borrowing costs by a quarter-point to 5.0 percent, the central bank announced following a regular meeting
Markets are split on whether the Bank of England will deliver its first rate cut since the pandemic on Thursday, lopping it from the current 5.25%
It’s not perfect, but the central bank has been better than others in terms of honesty, humility, and willingness to learn from its mistakes
Bank of England on June 20 kept the main interest rate at 16-year high of 5.25 percent, even though inflation is now at its target of 2 percent.
Federal Reserve and Bank of England weigh case for reducing borrowing costs as voters prepare to go to polls
Policymakers will get another set of consumer price data before their June meeting
The bank's nine-member Monetary Policy Committee voted 7-2 to keep rates unchanged, with the 2 dissenters backing a quarter-point reduction.