Live Updates > Live Update Details
2025-12-18 20:10:19
[Bank of England Cuts Rates by 25 Basis Points to 3.75% as Expected] ⑴ The Bank of England cut its benchmark interest rate by 25 basis points to 3.75%, the lowest level since 2022, as easing inflation and increasing signs of economic pressure prompted policymakers to take action. ⑵ This is the first rate cut since August, after keeping rates unchanged in September and November. ⑶ Five policymakers voted to cut rates, while four wanted to keep them unchanged. ⑷ UK annual inflation slowed to 3.2% in November, an eight-month low and below the Bank of England's forecast of 3.4%. ⑸ Meanwhile, GDP contracted for the second consecutive month in October, and private sector wage growth continued to cool. ⑹ Investors will closely watch the voting divisions and policy guidance of the nine-member Monetary Policy Committee for signals on the policy outlook for 2026. ⑺ The market increasingly believes the central bank is nearing the end of its easing cycle, and the market is currently only fully pricing in an additional rate cut next year.
