Bank of England cuts interest rates by 0.25 points to 4.75%
“Inflation is close to the 2% target and we’ve been able to cut interest rates again. We need to ensure inflation stays low. So we will not cut rates too quickly or too much. If things evolve as expected, it’s likely that interest rates will continue to fall gradually.”
Yesterday, the Bank of England’s Monetary Policy Committee (MPC) voted to reduce Bank Rate by 0.25 percentage points to 4.75%. It follows a similar decision by the European Central Bank on 17 October 2024 to cut the ECB’s interest rate on the deposit facility by 25 basis points to 3.25%. Later today, the U.S. Federal Reserve also voted to lower the target range for the federal funds rate by 0.25 percentage points to 4.50 to 4.75%.
The Bank of England also issued its last quarterly Monetary Policy Report, whose main messages are:
- Inflation is close to the 2% target, which has made it possible to cut interest rates again.
- The BoE needs to ensure inflation stays low. Therefore, they don’t expect to cut rates too quickly or too much.
- If things evolve as expected, interest rates will likely continue to fall gradually.
You can access the full details of the “Monetary Policy Report – November 2024” and the minutes of yesterday’s meeting of the Monetary Policy Committee through the links provided below.
The next meeting of the MPC to review the Bank Rate is scheduled for 18 December 2024.
Sources:
Bank of England, 7 November 2024. Bank Rate reduced to 4.75% – November 2024. [Online]
Available at: https://www.bankofengland.co.uk/monetary-policy-summary-and-minutes/2024/november-2024
[Accessed 7 November 2024].
Bank of England, 7 November 2024. Monetary Policy Report – November 2024. [Online]
Available at: https://www.bankofengland.co.uk/monetary-policy-report/2024/november-2024
[Accessed 7 November 2024].
European Central Bank, 17 October 2024. Monetary policy decisions (Press release). [Online]
Available at: https://www.ecb.europa.eu/press/pr/date/2024/html/ecb.mp241017~aa366eaf20.en.html
[Accessed 7 November 2024].
Federal Reserve, 7 November 2024. Federal Reserve issues FOMC statement (Press release). [Online]
Available at: https://www.federalreserve.gov/newsevents/pressreleases/monetary20241107a.htm
[Accessed 7 November 2024].
Credits and license: Bizuking wrote this news post based on official reports and press releases from the Bank of England, the European Central Bank, and the U.S. Federal Reserve. The image has been adapted by Bizuking from an original image by acediscovery, CC BY 4.0, via Wikimedia Commons. Bizuking licenses this post under the terms of the Creative Commons CC BY-SA 4.0 license.