The Bank of England has recently cut its main interest rate by a quarter-point to 4.5%, the lowest level since mid-2023, amidst rising concerns over a stagnating economy. This decision, supported by a unanimous vote, aims to provide relief as the UK faces pressures from higher energy and water bills that are expected to push inflation higher. The central bank has also halved its growth forecast, indicating a challenging economic landscape ahead. While the cut has resulted in a spike in the FTSE 100, the pound has plummeted in response to the news. Economists suggest additional cuts may follow as the bank navigates a complicated landscape of sluggish growth and rising prices.