London: The Bank of England announced on Thursday that it had reduced interest rates by 0.25 percent to 3.75 percent, marking the lowest rate since February 2023.
According to Kuwait News Agency, the Bank's Monetary Policy Committee (MPC) revealed that five out of nine members voted in favor of the rate reduction, while four members preferred maintaining the rate at 4 percent. The MPC noted that inflation has significantly decreased from its peak of over 10% three years ago, currently standing at 3.2%. The committee emphasized that interest rates are set to ensure inflation reaches the 2% target and remains stable. The MPC also mentioned the possibility of further gradual rate reductions, contingent on the continued easing of variables like pay growth and services inflation.