Bank of England Cuts Rates by 25 bps to 4.5% | Feb. 2025

The decision, unanimously backed by officials, comes amid weak economic growth and rising risks, including tax hikes and potential global trade tensions. However, inflation remains a concern, standing at 2.5% in December, above the BoE’s 2% target, with higher domestic fuel costs posing further risks. Investors expect at least three more cuts by the end of 2025, though Governor Andrew Bailey maintains a cautious, data-driven approach to future policy moves.