Federal Reserve
↓ Negative
Bank of England Surprises with 50 Basis Point Cut Amid Growth Fears
Financial Times
by Chris Giles
February 11, 2026 · 13:59
13 hours ago
Summary
BOE delivers larger-than-expected rate reduction as UK economic data deteriorates sharply.
The Bank of England shocked financial markets today with a 50 basis point interest rate cut, double the 25 basis points that most economists had predicted, citing a significant deterioration in the UK economic outlook.
Governor Andrew Bailey stated that the bank's decision reflected new data showing the economy contracting more sharply than previous forecasts suggested, with particular weakness in consumer spending and business investment.
The pound fell 1.2% against the dollar immediately following the announcement, while UK government bond yields dropped sharply across the curve.
Governor Andrew Bailey stated that the bank's decision reflected new data showing the economy contracting more sharply than previous forecasts suggested, with particular weakness in consumer spending and business investment.
The pound fell 1.2% against the dollar immediately following the announcement, while UK government bond yields dropped sharply across the curve.
Analysis
Relevance Score
High
Sentiment
↓ -0.28
Negative
Source Reliability
9.1
/ 10
High
Source
Financial Times
ft.com
Financial
UK