Bank of England cuts interest rate as US tariffs hit economy

Bank of England Governor Andrew Bailey attends the central bank's Monetary Policy Report press conference at the Bank of England, in the City of London, on May 8, 2025. [AFP]

The Bank of England on Thursday cut its key interest rate by a quarter point to 4.25 percent as the threat of US tariffs starts to weigh on economic growth.

The central bank's fourth such reduction in nine months, which had been widely expected by markets, contrasts with a decision by the US Federal Reserve on Wednesday to freeze borrowing costs.