India, Aug. 7 -- The Bank of England reduced its benchmark interest rate in a close call on Thursday suggesting that the monetary easing cycle is nearing an end as policymakers became more concerned about persistent inflation.
The Monetary Policy Committee, headed by BoE Governor Andrew Bailey, voted 5-4 to cut the bank rate by 25 basis points to 4.00 percent.
Markets anticipated a quarter-point reduction today. The fifth cut since last August took the rate to the lowest since early 2023.
The MPC conducted a second round of voting to arrive at the decision, in which five members sought 25 basis point cut and four members voted to hold the rate at 4.25 percent.
In the initial round, four members voted in favor of cutting the rate by 25 b...