Bank of England cuts main interest rate by a quarter-point to 4.75% after UK inflation falls

Associated Press

LONDON (AP) — The Bank of England has cut its main interest rate by a quarter of a percentage point after inflation across the U.K. fell below its target rate of 2%. The bank said Thursday its rate-setting panel lowered the benchmark rate to 4.75%. That is its second cut in three months and follows a sharp decline in inflation over the past year. Central banks worldwide dramatically increased borrowing costs from near zero during the coronavirus pandemic when prices started to shoot up. As inflation rates have recently fallen from multi-decade highs, these central banks have started cutting interest rates. The U.S. Federal Reserve is also expected to cut interest rates later Thursday.