Bank of England cuts interest rates: Positive Money response

Ellie McLaughlin, Senior Policy and Advocacy Manager at Positive Money, said: 

“It was the right decision to cut rates today - Trump’s tariffs risk further straining the UK economy, after households have already been hit by a cost of living crisis which rate rises worsened.

“Today’s decision will take some pressure off  household and government finances, but will ultimately be minor relief and will not fend off shocks we are facing, whether from Tariffs or our continued reliance on volatile fossil fuels.

“We need to see a broader toolkit being used, with the Bank of England and the government working in a coordinated way to navigate the challenges the economy is facing and raise living standards.”

Notes: 

• The Bank of England's announcement can be found here: https://www.bankofengland.co.uk/monetary-policy-summary-and-minutes/2025/may-2025