Bank of England cuts interest rate for first time in four years, but it was the closest call

By Hanna Ziady, CNN
3 minute read • Updated 9:49 AM EDT, Thu August 1, 2024

London (CNN) — The Bank of England cut interest rates Thursday for the first time since the start of the pandemic, providing some relief to households squeezed by the highest borrowing costs in 16 years.

The decision takes the benchmark interest rate in the United Kingdom to 5% from 5.25%, where it had stood since September following the longest-running series of successive rate hikes in at least a century.

The knife-edge decision saw five members of the Bank of England’s monetary policy committee vote to reduce the rate, while four wanted to keep it on hold.

Bank of England governor Andrew Bailey told reporters the decision to cut rates was “finely balanced,” suggesting that the bank will proceed cautiously.

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