Eshe Nelson

The reduction, to 3.5 percent from 3.75 percent, comes as inflation has slowed and the bank faces pressure to bolster the region’s flagging economy.

For the second time in five years, the parent company of the shipyard in Belfast, Northern Ireland, will enter administration, with Royal Navy contracts in the balance.

The British central bank has emphasized its intention to move steadily to ensure that inflation continues to slow.

Company hold contract to build Royal Navy ships

“The disinflationary process is well on track,” Christine Lagarde, the president of the central bank, said at a news conference in Ljubljana, Slovenia.

The new Labour Party government said it had inherited a challenging financial position and warned of tax increases and spending cuts when it reveals its budget this week.

The new Labour Party government said it had inherited a challenging financial position and warned of tax increases and spending cuts when it reveals its budget this week.

Rachel Reeves, the new finance minister, announced substantial tax increases in her first budget as she sought to strengthen public finances and services.

Rachel Reeves, the new finance minister, announced substantial tax increases in her first budget as she sought to strengthen public finances and services.

The Labour Party is betting that extra spending on public services and more investment will eventually revitalize the country’s stagnant economy.