“This interest rate cut is a timely boost to both households struggling with their mortgage bills and businesses after a difficult budget.
“Though the UK is in the middle of a policy loosening cycle, this latest cut is unlikely to noticeably ease the financial squeeze on people and businesses, given the multitude of rate rises that preceded this recent shift in direction.
“While the vote split suggests that the decision to cut rates was emphatic, the rather cautious meeting minutes suggest that a December rate cut is unlikely, particularly given greater global uncertainty and the bank forecasting higher inflation.
“Even though interest rates have further to fall, the upward pressure on inflation from the budget and growing global risks, including possible new US tariffs, could mean that policy is loosened more modestly than many anticipated.”
ENDS
Notes to editors:
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