
Why Britain is cutting interest rates – and the US isn’t
Interest rates have been cut to 4.25 per cent. The Bank of England’s Monetary Policy Committee (MPC) voted by five to four for what will be the fourth rate reduction since August. The decision breaks with the direction of the US Federal Reserve, which held rates yesterday after refusing to bow to pressure from President Donald Trump who wants to see rates cut. Jerome Powell, the Fed’s chairman, said America’s economy was ‘highly uncertain’ making it difficult to push ahead with a rate reduction. The government will hope that a trade deal will free Britain from the worst effects of the tariff war Back home, analysts are now anticipating the
