Bank of England to cut interest rates after committee's five-four split decision

UK central bank chose to reduce interest rates to 4% from 4.25%

Bank of England governor Andrew Bailey said rate cut was 'a finely balanced decision'. Picture:Alastair Grant/PA Wire

UK interest rates have been cut to their lowest level since March 2023 despite the Bank of England predicting a sharp rise in inflation amid accelerating food prices.

The central bank chose to reduce interest rates to 4% from 4.25%, pointing towards a recent fall in wage inflation and reduced uncertainty over the impact of US tariffs.