UK cuts interest rates as it warns Trump’s trade war will hamper growth

The Bank of England cut interest rates to 4.25% Thursday, as it warned that Washington’s global trade war will limit the UK’s economic growth over the next few years.

“The past few weeks have shown how unpredictable the global economy can be. That’s why we need to stick to a gradual and careful approach to further rate cuts,” the central bank’s chief, Andrew Bailey, said.

The cut — the UK central bank’s fourth since August — came as UK and US negotiators announced a trade deal Thursday that the bank said could “help to reduce uncertainty.” The details remained scant, however: The agreement is expected to be a narrow one, covering a few items that have been hit with high tariffs, the BBC reported.