Bank of England lowers Bank Rate by 0.25 percentage points to 4.5%

At its meeting ending on February 5, the Bank of England Monetary Policy Committee voted by a majority of 7-2 to reduce Bank Rate by 0.25 percentage points, to 4.5%. Two members preferred to reduce Bank Rate by 0.5 percentage points, to 4.25%. “In support of returning inflation sustainably to the 2% target, the Committee judges that there has been sufficient progress on disinflation in domestic prices and wages to reduce Bank Rate to 4.5% at this meeting. Based on the Committee’s evolving view of the medium-term outlook for inflation, a gradual and careful approach to the further withdrawal of monetary policy restraint is appropriate,” the BOE stated.