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Faisal Islam: Why has the Bank of England cut interest rates?

126d ago
World
BBC News
Faisal Islam: Why has the Bank of England cut interest rates?
The Bank of England has lowered interest rates to their lowest level since March 2023, despite inflation remaining significantly above the target rate. This decision, explained by Faisal Islam, comes as a surprise to many economists who anticipated rates would remain steady until inflation was closer to the desired 2% target. The move aims to stimulate economic activity, but carries the risk of further fueling inflation. Experts are divided on whether this is a necessary measure to prevent a recession or a premature action that could destabilize the economy.
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