“This decision confirms that UK interest rates are firmly locked onto a downward trajectory, providing a much-needed fillip to consumers battling with high mortgage costs and businesses still reeling from a painful budget.
“While this cut may lift morale, it is unlikely to sufficiently alleviate the challenging financial position faced by many people and businesses, as only slight inroads have been made into reversing the previous period of significant rate hikes.
“The unanimous decision to loosen policy suggests that concerns among rate setters over the UK’s struggling economy are currently outweighing worries over rising inflation, opening the door for another rate cut sooner rather than later.
“With the Bank of England’s latest forecasts suggesting that stagflation is a growing risk, the path to future interest rate cuts is likely to become more treacherous, particularly given mounting global headwinds.”
ENDS
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