The Bank of England reduced interest rates for the third time since August, amid ongoing downturn in the crypto market, where leading cryptocurrencies like Bitcoin have seen significant losses. The Bank announced a 25 basis point rate cut, lowering the base rate from 4.75% to 4.5%, in line with market expectations. The Bank of England raised its inflation forecasts for 2025, 2026 and 2027.The Monetary Policy Committee’s hawkish stance has raised speculation about its potential impact on the crypto market. The Bank of England’s move contrasts with the US Federal Reserve’s decision to keep rates steady. Given the central bank’s hawkish stance, investors may shy away from risky assets like cryptocurrencies, potentially triggering a panic sell-off and further downturns in the crypto market.
