Bank of England cuts interest rate: Impact of Trump's tariffs and trade negotiations

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The Bank of England cut its main interest rate by 0.25 percentage points to 4.25% on Thursday, despite an unexpected three-way split among policymakers as Trump's tariffs weigh on global economic growth.

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00:00All right, the Bank of England cut its main interest rate by 0.25 percentage points to 4.25 percent on Thursday,

00:08though with an unexpected three-way split among policymakers as U.S. President Donald Trump's tariffs weigh on global economic growth.

00:16The BOE's Monetary Policy Committee voted 5 to 4 in favor of the decision to cut rates by a quarter point.

00:23The BOE said it thought the increase in tariffs by the U.S. and other countries would weigh somewhat on British economic growth

00:33and push down on inflation in Britain, but it stressed how unclear the outlook remained.

00:39The disinflation process in the U.K. economy has continued.

00:44U.K. inflation was 2.6 percent in the latest data for March.

00:48That's above our 2 percent target, but it's a little bit lower than expected.

00:53So with the progress we have made, we can take another step in making monetary policy less restrictive.

01:00So today we've cut bank rate by 0.25 percentage points to 4.25 percent.

01:08As the past few weeks demonstrate, the global economic environment remains an uncertain one.

01:16Interest rates are not on autopilot. They cannot be.

01:19Instead, the MPC must continue to respond carefully to the evolving economic circumstances and the outlook for inflation in the U.K.

01:30Whatever happens, the MPC will continue to set bank rate to ensure that inflation returns sustainably to the 2 percent target in the medium term.

01:40Bank of England Governor Andrew Bailey said on Thursday, interest rates were not on autopilot and cannot be.

01:48And the central bank must continue to respond carefully to the evolving economic circumstances and the outlook for inflation.

01:55He welcomed news that Britain was poised to strike a trade deal with the United States, saying it will help reduce uncertainty.

02:03Thank you for theeninous

02:19of the pitch.

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