BoE cuts interest rate as US tariffs hit economy

LONDON, May 08 (AFP): The Bank of England on Thursday cut its key interest rate by a quarter point to 4.25 per cent as the threat of US tariffs starts to weigh on economic growth.

The central bank's fourth such reduction in nine months, which had been widely expected by markets, contrasts with a decision by the US Federal Reserve on Wednesday to freeze borrowing costs.

The Bank of England update meanwhile came shortly after Donald Trump announced an agreement with Britain on trade, the first such deal since the US president launched his global tariffs blitz.