Bank of England governor announces first rate cut since pandemic

The Bank of England (BoE) on Thursday cut its main interest rate for the first time since the COVID pandemic broke out in 2020, as British inflation has retreated in recent months.

In a tight 5-4 vote, BoE policymakers agreed to reduce borrowing costs by a quarter-point to 5.0 percent, the central bank announced following a regular meeting. Governor Andrew Bailey joined four other policymakers in bringing the rate down from a 16-year high, which will ease pressure on borrowers while denting interest earned by savers. Retail banks tend to mirror the direction of BoE policy when setting their own interest rates.