Bank of England cuts interest rates to 4.25% as US tariffs hit economy

The Bank of England on Thursday cut its key interest rate by a quarter point to 4.25 percent as the threat of US tariffs starts to weigh on economic growth.

“Prospects for global growth have weakened as a result of… tariff announcements,” the BoE said in statement following a regular meeting.

Britain is facing 10-percent tariffs on most of its goods exported to the United States, its second-largest trading partner after the European Union.

Bank of England governor Andrew Bailey has insisted that Trump’s trade assault could hurt Britain’s economy even if the country avoided the heaviest tariffs.

London is in the midst of negotiations with Washington over a post-Brexit trade deal that could see levies reduced in return for relief over Britain’s digital services tax paid by US tech giants, according to media reports.