Bank of England cuts interest rates to 3.75%

The Bank of England has lowered interest rates from 4% to 3.75%, a move aimed at boosting the struggling UK economy ahead of Christmas. The decision came from a close vote within the monetary policy committee, indicating ongoing concerns about inflation.

Governor Andrew Bailey noted, “We’ve passed the recent peak in inflation,” but also cautioned that future cuts would be “a closer call.” Despite a significant reduction in inflation to 3.2%, concerns remain about wage growth and inflation risks.

Chancellor Rachel Reeves welcomed the cut, highlighting it as part of a series of measures to support families and businesses.