LONDON, Aug 2 (Reuters) - The Bank of England’s first interest rate cut in more than four years will help to foster a cautious sense of optimism about Britain’s long-struggling economy, but the scale of the growth challenge facing the new government remains huge.

The BoE lowered its benchmark rate to 5.0% on Thursday, from a 16-year high of 5.25%, offering a bit more relief to households and businesses who are emerging from the inflationary shocks of the COVID pandemic and Russia’s invasion of Ukraine.