Rachel Reeves welcomes interest rate cut br The Bank of England has cut interest rates for the first time in more than four years, providing much needed relief to millions of homeowners and families still reeling from the higher cost of living. br br In a tightly contested decision announced at midday, members of the nine-strong monetary policy committee (MPC), the group tasked with setting the UK base rate, lowered borrowing costs after holding them at their peak for the longest stretch in more than two decades. br br The group voted 5-4 in favour of cutting the base rate by 0.25 percentage points from a 16-year high of 5.25 per cent. Andrew Bailey, the governor of the Bank of England, backed cutting the base rate to 5 per cent.