The decision on Thursday was widely expected, though there was an array of opinion on the nine-member monetary policy committee, with two voting for a bigger half-point cut to four per cent, and two voting to hold rates.
Bank governor Andrew Bailey said inflationary pressures had continued to ease, paving the way for the fourth quarter-point rate cut since August.
The bank believed tariff increases by the US and other countries would weigh somewhat on British economic growth and push down on inflation, but stressed the outlook was unclear.
"The past few weeks have shown how unpredictable the global economy can be," he said.
"That's why we need to stick to a gradual and careful approach to further rate cuts. Ensuring low and stable inflation is our top priority."
The decision is the first since US President Donald Trump made his tariff announcement in early April.
Though most tariffs were paused for 90 days following the ensuing market turmoil, including the 10 per cent baseline tariff applied to UK goods entering the US, the backdrop for the global economy remains highly uncertain.
Some of that uncertainty, with regard to the British economy, could be lifted later on Thursday when details of a trade deal between the US and the UK are announced.
At the very least, they are expected to lower the tariff burden.
Though the tariff burden may be eased, the biggest uncertainty facing the global economy is the potential for a US-China trade war, which would dampen economic growth everywhere.
The rate cut comes despite expectations that inflation will rise further above the bank's two per cent target in coming months, from the current 2.6 per cent as a result of a raft of price increases in April, such as domestic energy and water bills, and firms passing on tax rises to consumers.
"While headline inflation is expected to rise in the near-term, we do not expect that to persist," said Bailey, adding it would be back around target in two years' time.
Unlike the Bank of England, and the European Central Bank, which in April also cut interest rates, the US Federal Reserve kept rates unchanged on Wednesday as its policymakers wait to see how Trump's tariffs affect the US economy before making any moves.
