Bank of England slashes rates to 4.25% as tariffs threaten growth

Recently, the Bank of England cut its benchmark interest rate by 0.25 percentage points to 4.25% for the first time this year, amid global trade tensions resulting from new US tariffs.

The Bank downgraded the UK growth forecast to 1.25% for 2026 with a predicted GDP growth of 1% for this year, signaling concerns over prolonged economic uncertainty and inflation risks.