The Bank of England lowered its benchmark rate for the first time since the onset of the coronavirus pandemic as inflation receded and the underlying growth momentum remained weaker. The Monetary Policy Committee, led by Governor Andrew Bailey, decided to cut the bank rate by a quarter-point to 5.00 percent from 5.25 percent, which was the highest since early 2008. This was the first reduction in UK interest rates since March 2020. The MPC voted 5-4 to cut the bank rate. For members supporting the rate cut, the decision was finely balanced. It is now appropriate to reduce slightly the degree of policy restrictiveness, they said. Among the nine MPC members, other four preferred to maintain the rate at 5.25 percent.

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