Rates Cut to 5.25%

BoE

The Bank of England cuts interest rates to 5.25%

BoEThe Bank of England cuts interest rates to 5.25%

In their role of managing the country’s financial stability the Bank of England’s Monetary Policy Committee has cut the interest rate to 5.25%.

After rates climbed to 5.75% in August 2007 in an attempt to curb the credit boom, the rate was cut by a quarter of one percent in December and then maintained in January despite calls from some quarters for a new year cut.

Across the pond, the US economy has seen rockier predictions for business in the year ahead with some analysts predicting a drastic slowdown and others even seeing a recession.

However, although there have been strong indications that UK business growth has been slowing recently, the predictions are still for growth – not as much economic growth as previously forecast but still upward, just slow and steady.

With this in mind, the Bank of England have been loath to follow the US Federal Reserve’s decisions to, quite literally, slash interest rates and have been far more cautious with their decisions. The US drastically cut rates twice in January, the first time in an unprecedented move a week before the cuts were due and then a week later.

In January the BoE’s Monetary Policy Committee voted 8 to 1 to freeze the interest rate.

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