In currency markets, the British pound also responded positively to the BOE’s decision, rising 0.3% to reach $1.2929. The pound’s appreciation reflects market sentiment that while rates are gradually decreasing, the central bank remains cautious about easing too quickly.
Finance Minister’s Response and Economic Outlook
U.K. Finance Minister Rachel Reeves expressed approval of the BOE’s rate cut, acknowledging it as beneficial for households struggling with high costs. However, she emphasized that economic pressures on families remain significant. Reeves referred to prior government fiscal missteps, including former Prime Minister Liz Truss’s “mini-budget” in 2022, which led to significant market turmoil and required BOE intervention. Reeves positioned her recent budget as part of a strategy to deliver…
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