Bank of England cuts interest rates as it warns food costs could push inflation to 4%

<p>Bank’s policymakers cut base rate by quarter point to 4% amid concern about strength of UK economy</p><p>• <a href="https://www.theguardian.com/business/live/2025/aug/07/bank-of-england-interest-rate-decision-trump-tariffs-trade-war-business-live-news-updates"><strong>Business live – latest updates</strong></a></p><p><a href="https://www.theguardian.com/business/2025/aug/07/uk-interest-rate-cut-bank-of-england-mortgages-savings"><strong>• What the rate cut means for mortgages and savings?</strong></a></p><p>The Bank of England has warned that soaring food prices could drive inflation to 4% as it voted for a fifth cut in interest rates in a year, amid mounting concerns over the strength of the UK economy.</p><p>In one of its closest decisions since its independence more than 25 years ago, the Bank’s monetary policy committee (MPC) voted by 5-4 to cut its key base rate by a quarter point to 4%.</p> <a href="https://www.theguardian.com/business/2025/aug/07/bank-of-england-cuts-interest-rates-quarter-point-4">Continue reading...</a>