The Bank of England has today cut interest rates by a quarter point to 5.25%. The cut is considered modest in the current climate – many predicted a half-point cut – but another is expected in May.
The CBI welcomed the decision, and its predicted effect on the economic outlook for the rest of the year. ‘This should help ensure there is a soft landing to the slowdown now underway. Looking ahead though, the Bank must balance the effect that cutting rates while inflation is rising might have on its credibility,’ said chief economic adviser Ian McCafferty.