Finance · 18 December 2025
Bank of England cuts interest rates to 3.75 percent
The Bank of England's Monetary Policy Committee voted 5-4 to cut interest rates from 4% to 3.75% on December 18, marking the sixth reduction since August 2024 and bringing borrowing costs to their lowest level in almost three years. The decision follows inflation falling to 3.2% in November from 3.6% in October and unemployment rising to a near five-year high of 5.1%. Governor Andrew Bailey cited falling inflation pressures but warned future cuts would become increasingly difficult decisions as rates approach neutral levels.
Reported by Bank of England · How we write briefs