1353 GMT - The Bank of England cut interest rates on Thursday but its divided vote suggests policymakers could be more cautious than they were at the time of the last rate cut in February, Capital Economics' Ruth Gregory says in a note. The central bank cut its key rate to 4.25% from 4.5%. As in February, two of the nine members voted to reduce rates by a bigger 50 basis points but this time two also voted for unchanged rates. The BOE will likely pursue more rate cuts, though perhaps not as fast as markets expect, Gregory says. It reiterated that rate cuts will be "gradual and careful," suggesting that policymakers aren't ready to conclude that near-term inflation risks have disappeared, she says.(edward.frankl@wsj.com)

(END) Dow Jones Newswires

May 08, 2025 09:53 ET (13:53 GMT)

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