The rate cut is the bank’s fifth since last August, when policy makers began to lower borrowing costs from a 16-year high of 5.25%. The Bank of England’s key rate — a benchmark for mortgages as well as consumer and business loans — is now at the lowest level since March 2023.
“There will be hopes that if loans become cheaper, it will help boost consumer and business confidence but there’s a long way to go,” Susannah Streeter, head of money and markets at Hargreaves Lansdown, said before the decision. “In the meantime, speculation over potential tax rises in the Autumn Budget may keep households and companies cautious, given the uncertainty over where extra burdens may land.”
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