The Bank of England reduces interest rates by a quarter of 4.25 %

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The Bank of England reduced interest rates by a quarter to 4.25 percent, but stressed that it was not on a prior road to more cuts, as it is preparing for the impact of US President Donald Trump’s policy.

The Monetary Policy Committee at the Bank of England has been divided into three ways to the decision, which comes before the announcement of a The United States of America commercial deal London hopes to limit the tariff for British exports.

While it was expected to reduce a quarter of a point on Thursday, the MPC insistence that it would retain a “gradual and accurate approach” for more price discounts that prompted merchants to trim their bets on greater price cuts this year.

“Interest rates are not on the automated pilot – it cannot be,” said Andrew Billy, the governor of the Bank of England.

Traders are now pricing two price discounts this year, with an opportunity of approximately 40 percent – a decrease from 80 percent before the meeting according to the levels involved in the bombing markets.

“This is more than by MPC,” said Sanjay Raja, the chief economist in Deutsche Bank. “The probability of successive discounts must decrease to successive prices on the back of this.”

Although most of the five MPC members supported a quarter, two preferred a larger and a half reduction, points and two rates required to survive by 4.5 percent.

“It is generally, it is a noisy surprise,” said Francesco Pissol, a strategic expert by the Foreign Labor Organization in Inge, with highlighting that the Senior Economists of the Bank of England is among those who vote unchanged.

The pound rose above $ 1.33 after voting, and placed it in a positive area for today.

The return on a two -year doctrine, which turns back to the price and reflects the interest rate expectations, increased 0.06 percent to 3.87 percent.

the Bi It competes with the influence of prices and economic activity of 40 billion pounds of taxes, announced by Chancellor Rachel Reeves in the October budget, as well as the uncertainty resulting from Trump’s tariff plans.

The central bank also faces the possibility of high inflation in the coming months, partially driven by the increase in families’ bills. In a new set of predictions released on Thursday, inflation will expect England’s expectations of 3.5 percent in the third quarter before returning to the central bank’s 2 % goal in 2027.

This week’s meeting was the first since Trump’s announcement last month of the global customs tariff, which the Bank of England said you have helped weaken the possibilities of global growth – although it added that “the negative effects on the United Kingdom’s growth and inflation are likely to be smaller.”

UK officials suggest that a deal on Thursday with Washington may be limited in the range and largely focusing on car and steel industries. Pelly said the deal would be “welcome.” “This will help reduce uncertainty, and this is important,” he said.

The underlying Bank of England in the UK GDP has slowed since mid -2014, expecting that the economy will expand by 1 percent this year and weaker 1.25 percent in 2026.