Today, the Bank of England announced a 25 basis points cut to interest rates, to 4.5%.
While this was widely expected, this decision was not unanimous, with two members of the Monetary Policy Committee voting for a 50-basis point cut.
The decision was released alongside the Bank’s revised economic projections, where the UK growth outlook was significantly downgraded.
Taken together, these developments seem to represent a slight dovish shift in the MPC’s outlook, which could pave the way for several more rate cuts this calendar year.
It is worth noting that the impact of potential tariffs between the UK and US were not accounted for in their forecast, which present large risks to both inflation and growth.
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