BoE cuts rates by 25bp in historic close call
For first time in history, MPC voted twice as initial round ended in 4–4–1 stalemate
The Bank of England has cut its policy rate by 25 basis points in an historically close decision that required a second round of voting from the monetary policy committee (MPC).
The committee today (August 7) reduced the bank rate to 4% in a 5–4 decision, with the majority voting for the quarter-point cut and the rest preferring to hold.
“We’ve cut interest rates today, but it was a finely balanced decision,” said BoE governor Andrew Bailey.
The committee had initially split 4–4–1. Megan Greene
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