Today the Bank of England decided to keep its policy interest rate held at 4.25%, but hinted it would reduce it further in August (it’s been cut four times over the past year, from its peak of 5.25%). Over on the continent, where inflation is lower, the European Central Bank recently cut its main rate to 2%, whilst Switzerland, which saw deflation of 0.1% in May, has cut its rate to zero. The US Federal Reserve is keeping its rate held at 4.4%, in the face of uncertainty over how much tariffs will push up inflation.
June 19, 2025