Bank of England lowers its main interest rate by 0.25%, to 5%, its first cut since for over 4 years

Associated Press

LONDON (AP) — The Bank of England is cutting interest rates for the first time since the onset of the COVID-19 pandemic in early 2020. In a statement Thursday, the bank said a majority on its nine-member policymaking panel backed a quarter-point reduction in its main interest rate to 5%, from the 16-year of 5.25%. Economists were divided as to whether the bank would cut rates given persistent price pressures in the services sector, which accounts for around 80% of the British economy. Yet inflation in the U.K overall has already hit the bank’s target of 2%.