Bank of England cuts interest rate from 16-year high

The Bank of England has made several recent announcements regarding interest rates and inflation. The Bank of England has cut interest rates for the first time since the start of the Covid pandemic, with a 5% base rate reduction voted in by a narrow majority of 5-4. This decision was in line with market expectations, following a fall in inflation to 2%. Small businesses that took out loans during the pandemic may also benefit from the rate reduction.