OR Bank of England (Boe) proceeded Thursday to the first reduction of interest rate her for 2025, continuing monetary relaxation amid concerns about the sluggish growth of the British economy, according to CNBC,

In particular, the Central Bank reduced interest rates by 25 basis points to 4.5%, with the majority of 7 members of the 9 -member Monetary Policy Committee voting in favor of decline. Economists were widely expected that the central bank would reduce interest rates.

It is noted that according to figures published in December, the economy remained stagnant in the third quarter, while the last monthly GDP measurement showed that the economy expanded only 0.1% in November, after shrinking by 0.1% in the economy. October. Weak retail data last month had raised the expectations that Boe would reduce interest rates.

In the meantime, the inflation of Britain fell to a lower than expected, and in particular to 2.5% in December, with prices rising further. The target of the central bank for inflation is 2%.

Boe said in a statement that there has been “significant progress in deflation in the last two years, as previous external shocks have retreated”.

However, he stressed that “there is a gradual and careful approach to further relaxation of monetary policy”.