Bank of England lowers interest rate to 4.75 pct

A woman shops in a supermarket in Sheffield, Britain, Nov. 7, 2024. The Bank of England (BoE) on Thursday reduced interest rates for the second time this year, setting the rate at 4.75 percent, a 0.25 percentage-point decrease from the previous 5 percent.

This adjustment brings rates to their lowest level in over a year, last seen below 5 percent in June 2023.

The BoE noted Labour's Budget is expected to have a modest effect on inflation, with businesses likely to offset higher National Insurance costs by passing them on to consumers through price increases. Additionally, the rate cut could potentially moderate the pace of wage growth. (Photo by Jon Super/Xinhua)

LONDON, Nov. 7 (Xinhua) -- The Bank of England (BoE) on Thursday reduced interest rates for the second time this year, setting the rate at 4.75 percent, a 0.25 percentage-point decrease from the previous 5 percent.

This adjustment brings rates to their lowest level in over a year, last seen below 5 percent in June 2023.

The BoE noted Labour's Budget is expected to have a modest effect on inflation, with businesses likely to offset higher National Insurance costs by passing them on to consumers through price increases. Additionally, the rate cut could potentially moderate the pace of wage growth.

However, the Bank revised its 2025 GDP forecast upwards and projected a significant drop in the unemployment rate, from 4.7 percent to an anticipated 4.1 percent.

People walk out of a supermarket in Sheffield, Britain, Nov. 7, 2024. The Bank of England (BoE) on Thursday reduced interest rates for the second time this year, setting the rate at 4.75 percent, a 0.25 percentage-point decrease from the previous 5 percent.

This adjustment brings rates to their lowest level in over a year, last seen below 5 percent in June 2023.

The BoE noted Labour's Budget is expected to have a modest effect on inflation, with businesses likely to offset higher National Insurance costs by passing them on to consumers through price increases. Additionally, the rate cut could potentially moderate the pace of wage growth. (Photo by Jon Super/Xinhua)