Bank of England cuts rates as trade clouds start to lift – POLITICO

LONDON — The Bank of England cut its key interest rate on Thursday by a quarter-point to 4.25 percent, its fourth cut in nine months, pointing to the risks of a global economic slowdown due to the trade war unleashed by the U.S.

The move will ease the pressure on businesses and households who have been hurt by a barrage of tax increases since Labour took power last year. It will also help to bring down the interest bill on the government’s own borrowing, reducing the need for Reeves to find savings elsewhere in her struggle to put Britain’s public finances on a more solid footing.

However, the Bank stressed that the outlook is still highly uncertain, and said it will “stick to a gradual and careful approach to further rate cuts.”