Rates are now at their lowest since March 2023 even though inflation is well above target.

The Bank of England has cut its main interest rate by a quarter percentage point to 4%, as policy makers seek to bolster the sluggish U.K. economy.

That was the dilemma for the Bank of England when four members voted for no change to interest rates, four voted for a quarter-point cut, and one voted for a half-point reduction. Related: Bank of England on course for slowest ever pace of rate cuts. But without the abuse.