$USDC The Bank of England (BoE) has reduced its benchmark interest rate by 0.25 percentage points to 4.25%. This is the central bank’s first rate cut of the year and comes amid growing concerns about global trade tensions triggered by new US tariffs.

The move from the Bank’s Monetary Policy Committee (MPC) marks the fourth rate cut since August 2024. It also warned that the UK economy would slow by a further 0.3% over the next three years in addition to dramatic cuts to its forecasts made earlier this year.

In a setback for Chancellor Rachel Reeves, the MPC warned that a combination of uncertainty surrounding the impact of US trade policy and clouds hanging over the UK economy meant economic growth would be almost stagnant for the rest of the year.

Governor Andrew Bailey said the global outlook had become more uncertain. He noted that the past couple of weeks had shown how volatile the global economy could be, which was why the Bank of England took a cautious and phased a