Bank of England cuts interest rate to 4.75% UK inflation falls below target

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The Bank of England decided to cut interest rates by 25 basis points at its monetary policy meeting today. The reduction is the second rate cut after a reduction in August this year.

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The Bank of England cut it to 4.75% from 5% on November 7, marking the second rate cut this year, as UK inflation fell to 1.7% in September, below the central bank's 2% target.

The rate cut comes after the BoE decided to keep interest rates on hold in September, after lowering the rate to 5% in August. The September pause was meant to assess the impact of earlier price cuts, ensuring inflation is under control.

UK inflation fell sharply to a three-year low of 1.7% from 2.2% in September, falling below the BOE's 2% target and supporting more accommodative monetary policy stances.

Financial markets were more likely to lower rates in November, although analysts warned that the UK government's recent fiscal policy decisions, including tax increases and changes to debt rules, could affect the pace of future rate cuts.

The central bank has announced that it will maintain a cautious approach to monetary easing. Some members of the Monetary Policy Committee expressed concern about inflationary pressures when rates fell in August. This suggests that future reductions will be gradual to avoid a rebound in inflation.

The BOE's decision comes ahead of the Federal Open Market Committee meeting, where the US Fed is expected to announce a 25 basis point rate cut.

The Fed cut the federal funds rate by 50 basis points in September to 4.75%, bringing it to a target level of 5%. The decision was heavily influenced by easing inflation and signs of a weakening labor market.

Following the Fed's September decision, Bitcoin's price jumped 6% to $63,000. It was trading around $75,000 on CoinGecko in the last 24 hours when it barely launched.

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