Bank of England Poised for Fourth Rate Cut

The Bank of England is widely expected to lower its key interest rate by 0.25 percentage points to 4.25%, marking its fourth consecutive cut amid ongoing concerns over slowing UK growth and global trade tensions linked to Donald Trump’s tariffs. Policymakers are responding to a recent drop in inflation, with the consumer price index easing to 2.6% in March, but warn that domestic factors could push price pressures back up later in the year. The Monetary Policy Committee will update its economic forecasts, likely revising growth projections downward for 2026 and indicating that the pace of further cuts depends on future trade disruptions. Markets have already priced in multiple cuts for the remainder of the year, reflecting persistent worries over the impact of trade tensions on economic activity. The Bank’s decision and subsequent comments from Governor Andrew Bailey will be closely watched for insights into future policy direction and its effects on consumers, particularly mortgage holders and savers. This action aligns with other central banks facing similar economic and fiscal challenges.