Thus, the Bank of England has joined the club of central banks in developed countries that have relaxed their monetary policy, along with the European Central Bank, the Bank of Canada, and the Swedish Riksbank.
Note that the vote favouring a lower key rate was very close within the Bank of England, with only five in favour against 4 for the status quo. Major British money changers continue to be concerned about the price drift. Although UK inflation has fallen to 2%, the price rise, excluding food and energy, remains strong (3.5%). Wages, which are driving up the price of services, also continue to rise strongly.
The Bank of England will carefully monitor price developments in the coming months before making each monetary decision. Given the UK economy's cyclical weakness, it will undoubtedly continue to lower its key interest rate. However, it will take time for lower interest rates to boost the UK economy.
British equities are a negligible diversification for the less risk-sensitive investors.