The Bank of England has cut interest rates to 4.5% from 4.75%.
The decision could lead to cheaper borrowing costs for things like mortgages and loans, but also lower returns on savings.
Today’s decision means rates are now at their lowest point since June 2023.
Summary
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The Bank of England has cut interest rates from 4.75% to 4.5%
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It’s the lowest base rate since June 2023
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The Bank’s Monetary Policy Committee voted 7-2 in favour of the cut – those two members wanted a bigger cut, to 4.25%
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Cutting the rate makes borrowing cheaper, and is intended to boost consumer spending
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But a lower base rate can lead to lower returns for savers
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