“We need to make sure inflation stays close to target, so we can’t cut interest rates too quickly or by too much,” said Governor Andrew Bailey.Henry Nicholls/ Pool photo via Getty Images

Bank of England cuts key rate to 4.75 percent as inflation heads back to target – POLITICO

· POLITICO

LONDON — The Bank of England cut its key interest rate for the second time this year, saying it was increasingly confident that inflation is coming under control.

The Monetary Policy Committee voted decisively to lower the Bank Rate by 0.25 percentage points to 4.75 percent. External member Catherine Mann, typically the most hawkish voice on the MPC, cast the only vote for no change.

But it warned that it now sees inflation staying above its 2 percent target for longer than previously, due partly to the new Labour government’s spending plans.