STORY: Bank of England lowers interest rate to 4.75 pct
SHOOTING TIME: Nov. 7, 2024/File
DATELINE: Nov. 8, 2024
LENGTH: 00:01:17
LOCATION: London
CATEGORY: ECONOMY

SHOTLIST:
1. various of London
2. SOUNDBITE (English): ANDREW BAILEY, Bank of England Governor
3. various of London

STORYLINE:

The Bank of England (BoE) on Thursday reduced interest rates for the second time this year, setting the rate at 4.75 percent, a 0.25 percentage-point decrease from the previous 5 percent.

SOUNDBITE (English): ANDREW BAILEY, Bank of England Governor
"Inflation has been close to our 2 percent target for more than half a year now. Today we have been able to cut bank rate again, by 0.25 percentage points to 4.75 percent."
   
This adjustment brings rates to their lowest level in over a year, last seen below 5 percent in June 2023.
   
The BoE noted Labour's Budget is expected to have a modest effect on inflation, with businesses likely to offset higher National Insurance costs by passing them on to consumers through price increases. Additionally, the rate cut could potentially moderate the pace of wage growth.
   
However, the Bank revised its 2025 GDP forecast upwards and projected a significant drop in the unemployment rate, from 4.7 percent to an anticipated 4.1 percent.

Xinhua News Agency correspondents reporting from London.
(XHTV)