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Interest rates cut to 4.25%

The Bank of England has cut interest rates from 4.5% to 4.25%, the lowest rate since May 2023.

09 May 2025

The Bank of England has cut interest rates from 4.5% to 4.25%, the lowest rate since May 2023.

The Monetary Policy Committee (MPC) had been expected to cut rates, and some experts anticipate back-to-back rate cuts.

Andrew Bailey, Governor of the Bank of England, commented: 'Inflationary pressures have continued to ease so we've been able to cut rates again.'

Responding to the cut, Alpesh Paleja, Deputy Chief Economist at the Confederation of British Industry (CBI), said: '[The] cut to interest rates was widely anticipated, underscoring the Monetary Policy Committee's (MPC) continued preference for a gradual loosening of monetary policy.

'The big question now is whether this gradualism will persist. Disinflationary risks have intensified over the last couple of months: US tariffs pose a fresh headwind to growth, global oil prices have fallen and, at home, the labour market is cooling.

'But heightened uncertainty could keep the MPC from easing off on the brakes too much.

'With so many moving parts in the global and domestic outlook, the Committee may maintain a cautious stance.'

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020 7794 5757

Numera, 4th Floor Charles House, 108-110 Finchley Road, London NW3 5JJ

Numera is a trading name of Numera Partners LLP | Company Registration No. OC365787 | Place of Registration: England & Wales | Registered to carry on audit work in the UK by the Institute of Chartered Accountants in England and Wales.

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Numera is a newly established forward-thinking firm of chartered accountants, with over 25 years in experience of audit, accountancy, taxation and business advisory services.

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