Bank of England makes first interest rate cut since pandemic

The Bank of England cut interest rates for the first time since 2020.

In a 5-4 vote, the bank lowered the cost of borrowing by a quarter of a percentage point to 5%.

The central bank hinted more rate cuts could come this year, however, the bank’s governor Andrew Bailey cautioned it would “not cut too quickly or by too much.”

The decision came just after the US Federal Reserve held interest rates steady on Wednesday, but signaled a future cut.

The decision is an “early gift” to the new Labour government, Bloomberg wrote, which had promised to revamp the economy in their recent election campaign.