Bank of England interest rate cuts to boost the Economy
The Bank of England’s decision to cut interest rates by a quarter percentage point is a much-needed boost for the economy. While the move wasn’t surprising, its impact is more significant than it might seem at first glance. Chancellor Rachel Reeves is likely to capitalize on this development in the coming weeks. This rate cut is like a ray of sunlight breaking through winter clouds, offering hope for better economic times ahead. It’s also a rare piece of good news for the government, which will undoubtedly use it to its advantage. The Bank of England tends to move cautiously, and this cut aligns with market expectations. However, it’s still an important step. In fact, this is the cut many had hoped for last December, but it was delayed due to rising gilt market rates and persistent domestic inflation, particularly in wages, which have been growing faster than productivity improvements. Since inflation peaked at 11.1% in October 2022, Bank Governor Andrew Bailey has emphasized that the ...