The Bank of England has made a significant decision to cut its main interest rate to 4%, the lowest level seen in over two years. This move, decided in a tightly contested vote among committee members, aims to address the economic slowdown in the UK, amidst ongoing concerns about inflation, job market stability, and external factors such as tariffs. The decision has led to a rally in the British Pound and provided a boost for mortgage holders. However, the Bank is also facing a divided outlook regarding its monetary policy, with some officials cautioning against rapid rate cuts. As the capital markets respond, the focus remains on how this rate cut will influence inflation rates and the broader economy.