A Bank of England has reduced interest rates this lunchtime to 4 per cent, the lowest level in two years
Their monetary committee voted narrowly 5-4 in favour of the rate cut with inflation still above the bank target of 2 per cent
A second vote was needed after it initially failed to reach a majority verdict,after Alan Taylor, an external member had initially favoured a bigger reduction, switched to back a quarter-point in the second round of voting. Four members voted to keep rates on hold.
The Governor Andrew Bailey said thats “rates are still on downward path” but will be done “carefully and gradually” as the Bank warned that higher food prices will drive inflation further above target in the near term, predicting a peak at 4 per cent in September, above than previous estimates.
