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UK Banks
The Bank of England cut its main interest rate by a quarter of a percentage point to 4.25 per cent amid concerns over the potential shock to global growth emanating from the tariff policies of the Trump administration. The decision Thursday was widely expected, though there was an array of opinion on the nine-member Monetary Policy Committee, with two voting for a bigger half-point cut to four per cent, and two voting to hold rates. Bank Governor Andrew Bailey said inflationary pressures have continued to ease, paving the way for the fourth quarter-point rate cut since August. "The past few weeks have shown how unpredictable the global economy can be," he said. "That's why we need to stick to a gradual and careful approach to further rate cuts. Ensuring low and stable inflation is our top priority." The decision is the first since President Donald Trump made his tariff announcement in early April. Though most tariffs were paused for 90 days following the ensuing market turmoil, ...
The Bank of England warned Wednesday that households across the UK are facing increasing problems from the sharp increase in interest rates but found that the country's biggest banks are resilient enough to offer more help than they were able to before the global financial crisis 15 years ago. In its regular health check of the economy, the central bank said British households are facing higher debt burdens as a result of rising interest rates, particularly those whose fixed-rate mortgage deals have come to an end or soon will be. However, it said there are several factors that should limit the number of people who have to default on their mortgages. It noted, for example, that the country's banks have more capital than they did 15 years ago to allow them to offer struggling households more financial options such as allowing borrowers to vary the terms of their loans. The bank lifted its main interest rate by half a percentage point to a 15-year high of 5% last month and warned of .