The Bank of England has halved its 2025 growth forecast and cut interest rates by a quarter-point to 4.5%. In a blow to UK chancellor Rachel Reeves, the BoE said it now expected the economy to grow by 0.75 per cent this year, half its November forecast of 1.5 per cent.

Interest rates were lowered by a quarter of a point. Governor Andrew Bailey said there was "heightened uncertainty".

The Bank of England has cut its main interest rate for the third time in six months with the British economy struggling to post any meaningful growth. In a statement Thursday, the bank said the nine-member Monetary Policy Committee lowered its main interest rate by a quarter of a percentage point to 4.