The Bank of England’s governor
said a decision to cut interest rates is “an important moment in time” but warned people not to expect a sharp fall in the coming months.
In a closely-run decision, rates were lowered to 5% from 5.25% on Thursday, marking the first cut since the start of the pandemic in March 2020.
Interest rates dictate the cost of borrowing set by High Street banks and money lenders for the likes of mortgages and credit cards.
Bank governor Andrew Bailey said that lower inflation had paved the way for the fall in interest rates but told the BBC it was “not mission accomplished yet”.
