XRP, ETH, SOL Soar As Bank of England Lowers Interest Rate

The Bank of England’s decision to lower interest rates has sparked optimism in the crypto market, with Ethereum (ETH), XRP, and Solana (SOL) being the most benefited. As the central bank reduces the interest rate to 4% from 4.25%, it marks the lowest level since March 2023 and the fifth cut since August.

BOE Cuts Interest Rates to 4%

During the latest monetary policy meeting, the Bank of England lowered interest rates by 25 basis points from 4.25% to 4.00%. The BOE’s Monetary Policy Committee (MPC) voted 5-4 in favor of cutting the key interest rate. The central bank describes this move as a “gradual and careful” approach to monetary policy.

In the Monetary Policy Summary, the bank stated that the MPC is committed to eliminating any persistent inflationary pressures, aiming to sustainably bring inflation back to its 2% target in the medium term. The statement added,

The Monetary Policy Committee (MPC) sets monetary policy to meet the 2% inflation target, and in a way that helps to sustain growth and employment. The MPC adopts a medium-term and forward-looking approach to determine the monetary stance required to achieve the inflation target sustainably.

Further, the BOE added that future interest rate cuts will depend on the progress of underlying disinflationary pressures. On Thursday, BOE Governor Andrew Bailey emphasized the importance of a measured approach, cautioning against rapid interest rate cuts.

In February 2025, the BOE reduced its interest rates to 4.5%, which then marked the lowest level since June 2023. Later in May, the bank lowered it to 4.25%.

Crypto Market Soars As Markets Expect More Interest Rate Cuts Ahead

Following the Bank of England’s interest rate cut, the crypto market has seen a remarkable surge with top cryptocurrencies like ETH, XRP, and SOL soaring. The crypto market, currently at $3.82 trillion, has increased by 2.8% over the past 24 hours.

Among the top ten cryptocurrencies, Ethereum is the top performer, marking a significant surge of 6.87%. Solana follows with a 5.7% increase, while XRP is closely behind with a 4.5% gain. Dogecoin, the top meme coin, is also a gainer, surging by 6.5% over the last day.

George Brown, senior economist at Schroders, noted that while the rate cut was expected, the future path is uncertain due to conflicting signals from jobs, growth, and inflation data, which led to an unprecedented two rounds of voting to reach a decision.

It is noteworthy that the BOE’s move comes following other countries like the US and Japan’s decisions to hold their interest rates unchanged. As CoinGape reported, the Bank of Japan maintained its benchmark interest rate at around 0.5% following a two-day meeting, aligning with the US’s similar decision.

However, some economists believe that more interest rate cuts are to follow. Ashley Webb, U.K. economist at Capital Economics, cited before the current move, “We think the Bank of England will cut interest rates from 4.25% now to 3.00% in 2026, which would take rates below the low of 3.50% priced into the financial markets.”

Nynu V Jamal

Nynu V Jamal is a Senior Journalist at CoinGape. She boasts more than 3 years of experience in content writing, with expertise in crypto and blockchain. She has contributed to platforms like CoinEdition and CryptoTale, demonstrating her proficiency in navigating the dynamic crypto landscape.

Beyond her journalistic pursuits, Nynu is a literary enthusiast, having served as an Assistant Professor of English Language and Literature. She is a Master’s degree holder in English Literature and a UGC NET qualifier. Her academic background has enabled her to publish research papers on literature, while also nurturing her creative side as a published poet.

Her creative side extends to music, crafts, and art, which she actively explores. Her unique blend of analytical and creative skills allows her to craft engaging stories that captivate audiences. Stay updated with Nynu on LinkedIn

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