The Bank of England signals greater caution regarding further interest rate cuts

BlockBeats News, December 18, the Bank of England announced a rate cut on Thursday, with a close vote among members of the Monetary Policy Committee. The bank also indicated that the already slow pace of rate cuts may slow down even further.

After data released this week showed a sharp drop in inflation, and Bank of England staff predicted that economic growth would stagnate by the end of 2025, five members of the Monetary Policy Committee voted to lower the Bank of England's benchmark interest rate from 4.0% to 3.75%. This is the fourth rate cut since 2025. The other four members voted to keep the rate unchanged, as they were concerned that the UK's inflation rate might still be too high.

Bank of England Governor Bailey changed his stance and voted in favor of a rate cut, thereby reversing the committee's voting outcome. In a statement, Bailey said: "We still believe that rates will be lowered gradually. But after each rate cut, it becomes increasingly difficult to determine how much further we can cut." (Golden Ten Data)