Back to today’s briefing

Story perspectives

Bank of England Considers Rate Cut Amid Rising Unemployment

8/4/2025

42 7

Summary

Story summary

The Bank of England may reduce interest rates by 0.25 percentage points to 4% amid rising unemployment.
The UK economy contracted by 0.1% in May, with unemployment increasing to 4.7%, the highest since June 2021.
The International Monetary Fund forecasts minimal growth of 0.1% for Q3 and Q4, with inflation at 3.6%.
A divided vote in the monetary policy committee is expected due to escalating food inflation.

1 of 1

Story summary

The Bank of England may reduce interest rates by 0.25 percentage points to 4% amid rising unemployment.
The UK economy contracted by 0.1% in May, with unemployment increasing to 4.7%, the highest since June 2021.
The International Monetary Fund forecasts minimal growth of 0.1% for Q3 and Q4, with inflation at 3.6%.
A divided vote in the monetary policy committee is expected due to escalating food inflation.