Bank of England Cuts Interest Rates Amid Progress on Inflation

The MPC noted significant disinflation progress over the past two years, attributing it to fading external shocks and the impact of restrictive policy in curbing price pressures. Despite the cut, policymakers emphasized that rates remain in "restrictive territory" to ensure lingering inflation is fully subdued. The decision signals a gradual withdrawal of tightening while balancing growth and employment concerns against the need to sustainably anchor inflation at the 2% target.