In its August 2025 Monetary Policy Report, the Bank of England announced a further cut in interest rates to 4% as inflation, which had peaked above 11% in 2022, remains volatile amid food and energy price pressures.
CPI inflation rose to 3.5% in Q2, but policymakers expect it to dip toward the 2% target as global trade tensions ease and recent trade agreements provide stability.
The Bank acknowledged uncertainty stemming from external developments, including US tariffs and shifting commodity costs, which have complicated forecasts.
Pay growth, after a period of strength, has begun to moderate and unemployment has ticked up, reflecting cautious consumer sentiment and slower business investment.
The decision aims to support growth while ensuring inflation is kept in check, aligning monetary conditions with current fiscal risks and helping preserve household purchasing power.
Economic analysts say the move could encourage more investment and spending but warn against complacency if inflation resumes its upward trend later in the year.
2025-08-20 18:39:32
Gold is on track for its strongest annual performance since 1979, with bullion hitting a series of record highs driven by high interest rates, inflation, and increasing geopolitical crises.
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UK housing market sees 2% price drop in Q3 2025, driven by high interest rates and economic uncertainty.
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A new survey by the Confederation of British Industry (CBI) revealed that confidence in the UK's services sector has dropped due to persistent cost pressures and weak demand.
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UK inflation has unexpectedly accelerated to 3.8% in July, primarily driven by rising food, fuel, and airfare costs.
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UK inflation has unexpectedly accelerated to 3.8% in July, primarily driven by rising food, fuel, and airfare costs.
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Rate cuts by more than 20 banks following the BoE move risk pushing savings returns below inflation.
2025-08-20 18:39:32
Economists said the Q2 GDP surprise reduces pressure for rapid follow-up cuts after August’s split decision.
2025-08-20 18:39:32
UK economy grew 0.3% in Q2 2025, beating expectations amid tariff and jobs headwinds.
2025-08-20 18:39:32
The pound strengthened this week as traders priced Fed easing and reassessed BoE cuts after resilient UK growth.
2025-08-20 18:39:32
UK stocks hit new highs as investors shake off trade worries; inflation and unemployment rise.
2025-08-20 18:39:32
The Bank of England reduced rates by 25bp to 4.0%, with a closely divided MPC underscoring policy uncertainty.
2025-08-20 18:39:32
The Bank of England's Monetary Policy Committee voted to cut the base rate by 0.25 percentage points to 4.0%, marking the fifth consecutive cut in a year.
2025-08-20 18:39:32
New data shows the UK's services sector experienced its largest drop in new orders in almost three years, adding to the pressure on the Bank of England to cut interest rates.
2025-08-20 18:39:32
Business leader optimism in the UK economy has fallen to its lowest level since records began in 2016.
2025-08-20 18:39:32
The British Pound is experiencing its weakest month against major currencies in nearly two years.
2025-08-20 18:39:32
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2025-08-20 18:39:32
The Department for Work and Pensions confirms the £150 Warm Home Discount scheme will expand to include Universal Credit claimants from this winter.
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Lender Close Brothers has set aside an additional £33 million to compensate customers for overcharged car loans, marking a fresh blow amid the ongoing investigation into historical mis-selling in the UK car finance market.
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The state pension age is expected to rise again, leaving 1.5 million Britons in 'benefit limbo' who are too young to retire but have lost access to key benefits and tax credits.
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Chinese money launderer Zhimin Qian has been convicted in one of the UK’s largest-ever money laundering cases, bringing an end to a seven-year Met Police investigation into a global scheme to clean illicit cryptoassets by purchasing property.
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A new report has urged the government to accelerate the rise of the state pension age to 68, arguing that the welfare bill is becoming unsustainable and that past governments have 'treated the issue like a hot potato.'
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Replace bathtubs with groutless showers for easier cleaning, water savings, and timeless design.
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The Jersey Communication Foundation has distributed grants exceeding £23,000 to six local projects, aiming to create a 'level playing field' and tackle social mobility issues in the Teesside community.
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Drivers advised to verify QR codes in car parks to avoid fraudulent payment sites.
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Use lemons, vinegar, and other foods for eco-friendly cleaning, avoiding harsh chemicals.
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US cattle and beef prices have soared to record highs amid tight domestic supply, strong consumer demand, and ranchers’ reluctance to expand herds, with restaurant owners forced to pass on soaring costs to diners.
2025-09-28 19:03:00