Bank of England Cuts Interest Rate by 25 Basis Points to 4.25%

The Bank of England decided in its meeting on Thursday to cut the interest rate by 25 basis points to 4.25%, in line with expectations.

This latest rate cut marks the fourth reduction by the Bank, and it comes during the Monetary Policy Committee’s first meeting since the announcement of the tariff package.

Markets are closely watching for any shifts in the Bank’s approach or its economic outlook for the coming period, especially after inflation fell more than expected in March dropping to 2.6% from 2.8% in February 2025 strengthening the case for a rate cut.

The British pound surged on Thursday, alongside the Australian dollar, after U.S. President Donald Trump said he would announce a “major trade deal” later today. The New York Times reported that the United Kingdom would be one of the signatories.