Interest rates cut to lowest level in more than two years
The Bank of England has cut its key interest rate to 4%, the lowest level in over two years. This is the fifth reduction in the interest rate since August 2022. The move is aimed at stimulating the economy and addressing the ongoing concerns about inflation and economic growth. The rate cut is expected to make borrowing more affordable for individuals and businesses, potentially leading to increased spending and investment. However, the impact on savers may be negative, as they will likely see lower returns on their savings. The decision reflects the Bank's efforts to navigate the challenging economic landscape, characterized by high inflation, sluggish growth, and uncertainty surrounding the future trajectory of the economy. The move is part of a broader strategy to support the UK's economic recovery and maintain financial stability.
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