Bank of England slashes interest rates to 4%: Here's why
The Bank of England just lowered its main interest rate to 4%, marking the fifth cut since last August.
The move comes as the UK economy slows, but inflation is still higher than the Bank's 2% target.
The decision was a close call, with the committee narrowly voting 5-4, half worried about rising prices and half—including Governor Andrew Bailey—pushing for relief.
What does this mean for you?
Interest rates affect everything from student loans to job prospects.
The Bank says inflation could hit 4% in September because of food costs, so they're being cautious about more cuts.
Bailey called this choice "finely balanced" and said any future changes will depend on how things play out.
For now, they expect slow economic growth (just 0.3% in Q3) and hope inflation cools down by mid-2027—so don't expect big changes overnight, but keep an eye on your wallet.