UK interest rates fall to 4.25% as Bank of England announces a quarter-point cut

<p>Move follows run of downbeat economic data and looks to cushion UK from Trump’s trade war fallout</p><ul><li><a href="https://www.theguardian.com/business/2025/may/08/uk-interest-rate-cut-mortgages-savings-bank-of-england">Explainer: what does it mean for mortgages and savings?</a></li><li><a href="https://www.theguardian.com/business/live/2025/may/08/bank-of-england-interest-rate-decision-cut-trade-war-pound-ftse-house-price-next-business-live-news">Business live – latest updates</a></li></ul><p>Bank of England policymakers have cut interest rates by a quarter point to 4.25% to cushion the UK economy against the impact of Donald Trump’s trade war.</p><p>The widely expected move from the Bank’s monetary policy committee (MPC), its fourth cut since last August, also carried a warning that the UK economy would slow by a further 0.3% over the next two years in addition to dramatic cuts to its forecasts earlier this year.</p> <a href="https://www.theguardian.com/business/2025/may/08/uk-interest-rates-cut-bank-of-england-uk-economy-trump-tariffs">Continue reading...</a>