Lowered British policy rate

In the interest rate announcement, the central bank states that it sees how subdued inflation means that further interest rate cuts may be necessary in 2026.

The decision follows two interest rate meetings in a row with unchanged policy rates and was made with the smallest possible majority, five votes to four, on the Bank of England's executive board.

Ahead of the interest rate announcement, inflation has fallen to its lowest level in eight months and the Bank of England expects it to continue to fall closer to the target of 2 percent by spring.