The Bank of England announced in a statement on Thursday that it has cut interest rates for the first time since the start of the COVID-19 pandemic in early 2020. The Bank’s nine-member policy-making body voted 5-4 to cut the Bank’s base rate by a quarter of a percentage point to 5% from its 1-year high of 5.25%. Economists were divided on whether the autonomous bank would cut interest rates, given the persistent price pressures on the services sector, which accounts for around 80% of the UK economy. However, UK inflation has already reached the bank’s target of 2%.