Bank of England cuts interest rate as inflation slows

The Bank of England announced a cut in key interest rates due to UK inflation hitting a three-year low. This is the second rate cut since August, easing pressure on borrowers. The decision was in line with expectations, with borrowing costs reduced by 25 basis points to 4.75%. The central bank indicated that more reductions could follow as inflation cools globally. The BoE’s caution about cutting too quickly and by too much boosted the British pound. The Federal Reserve is also expected to cut US rates later in the day. The decision comes amidst efforts by major central banks to manage inflation following the end of COVID lockdowns and geopolitical tensions.