Britain's central bank cut its main interest rate in response to a troubling mix of stuttering growth, stubborn inflation and President Trump’s tariff threats. Sterling lost about 0.5% against the dollar,

The Bank of England put a dovish twist to an expected rate cut, sending the British pound and bond yields lower. The central bank, as expected, cut interest rates by a quarter-point, its third reduction since August, to 4.5% from 4.75%.

The Bank of England made its first interest rate cut of 2025 on Thursday, resuming monetary easing amid ongoing concerns over sluggish growth in the British economy. The widely expected move saw the central bank lower its benchmark interest rate by 25 basis points to 4.