One day after the Federal Reserve decided to keep interest rates unchanged, the Bank of England lowered interest rates, highlighting the growing differences between the Federal Reserve and other central banks around the world in dealing with Trump's tariffs. The Bank of England's monetary policy committee cut interest rates from 4.5% to 4.25% on Thursday. This is the fourth time since the bank's 7th meeting. The move would bring its overall reduction in borrowing costs to the same level as the US. Although the Bank of England is more careful than other central banks in Europe to relax its policies, it has cleared the way for more aggressive steps if tariffs hit economic growth harder than expected. The Bank of England said in a statement: “The Commission will remain sensitive to increased unpredictability in the economic environment.” The two policymakers support deeper interest rate cuts, and believe that the Bank of England needs to act quickly to support the economy and ensure that inflation does not fall below target levels. However, out of 9 members of the Monetary Policy Committee, 2 voted to keep the key interest rate unchanged, which indicates that the job market is still strong and that households' expectations for future price increases are higher.

One day after the Federal Reserve decided to keep interest rates unchanged, the Bank of England lowered interest rates, highlighting the growing differences between the Federal Reserve and other central banks around the world in dealing with Trump's tariffs. The Bank of England's monetary policy committee cut interest rates from 4.5% to 4.25% on Thursday. This is the fourth time since the bank's 7th meeting. The move would bring its overall reduction in borrowing costs to the same level as the US. Although the Bank of England is more careful than other central banks in Europe to relax its policies, it has cleared the way for more aggressive steps if tariffs hit economic growth harder than expected. The Bank of England said in a statement: “The Commission will remain sensitive to increased unpredictability in the economic environment.” The two policymakers support deeper interest rate cuts, and believe that the Bank of England needs to act quickly to support the economy and ensure that inflation does not fall below target levels. However, out of 9 members of the Monetary Policy Committee, 2 voted to keep the key interest rate unchanged, which indicates that the job market is still strong and that households' expectations for future price increases are higher.