Bank of England lowers Bank Rate by 0.25 percentage points to 4.25%

At its meeting ending on May 7, the Monetary Policy Committee of the Bank of England voted by a majority of 5-4 to reduce Bank Rate by 0.25 percentage points, to 4.25%. “Two members preferred to reduce Bank Rate by 0.5 percentage points, to 4%. Two members preferred to maintain Bank Rate at 4.5%. There has been substantial progress on disinflation over the past two years, as previous external shocks have receded, and as the restrictive stance of monetary policy has curbed second-round effects and stabilised longer-term inflation expectations. That progress has allowed the MPC to withdraw gradually some degree of policy restraint, while maintaining Bank Rate in restrictive territory so as to continue to squeeze out persistent inflationary pressures,” the BOE stated.