Bank of England cuts UK interest rates again despite modest budget-related inflation spike

Associated Press

LONDON (AP) — The Bank of England has cut its main interest rate by a quarter of a percentage point after inflation across the U.K. fell below its target rate of 2%. The bank said Thursday its rate-setting panel lowered the benchmark rate to 4.75%. That is its second cut in three months, though bank governor Andrew Bailey cautioned that interest rates would not be falling too fast over coming months, partly because of the modest inflationary impact of last week’s budget, the first by the new Labour government. Bailey also said it was “not useful or wise to enter into speculation” about what policies might be introduced by Donald Trump;s incoming U.S. administration