Browsing: UK Economy

The British pound has weakened following a strategic decision by the Bank of England to cut interest rates amid stagflation worries. On February 5, 2025, the Bank’s Monetary Policy Committee reduced the Bank Rate to 4.5%, aiming to address inflation and stimulate economic growth. Despite the cut, inflationary pressures persist, with the Consumer Prices Index likely to rise to 3.7% by Q3 2025 due to increasing global energy costs. Economic growth also remains a concern with sluggish GDP and wavering market confidence, although the labor market remains stable. This monetary maneuver reflects the Bank’s cautious optimism in curbing inflation while fostering economic stability, leaving investors uncertain and raising questions about future rate adjustments. As the UK navigates these economic challenges, the Bank of England’s actions represent a critical juncture in its fiscal approach.