Bank of England meets expectations with 25 basis point rate cut to 4.75%

'Continued progress' on disinflation

The Bank of England has met market expectations by cutting interest rates by 25 basis points to 4.75%, citing cooling inflation and a loosening labour market.

All but one member of the Monetary Policy Committee voted to reduce the Bank rate at the meeting on Wednesday (6 November).  With UK inflation dropping below the Bank's 2% target in September, the MPC said there had been "continued progress" on disinflation thanks to the unwinding of external global shocks, although it noted "remaining domestic inflationary pressures are resolving more slowly". The central bank said inflation is expected to increase to around 2.5% by the end of the year, with headline GDP growth set to fall back to around 0.25% per quarter over the second half of this...