Economy

Bank of England cuts interest rates to lowest in almost three years after sharp dip in inflation

December 18, 2025

The Bank of England has reduced its key interest rate to 3.75%, the lowest in nearly three years, following a significant decline in inflation to 3.2%. This decision aims to support the economy amid increasing unemployment and divided opinions among policymakers, with expectations for inflation to approach the 2% target by next spring.

Representational Image

Credit: Firstpost

Key Highlights

Interest rate cut to 3.75% is the first in four months.
Inflation has dropped to 3.2%, down to an eight-month low.
The Bank of England aims to stimulate economic growth.
Governor Andrew Bailey has shifted to support policy easing.
Inflation is expected to approach the 2% target by spring 2026.

World Business

Sources

This quick summary is automatically generated using AI based on reports from multiple news sources. The content has not been reviewed or verified by humans. For complete details, accuracy, and context, please refer to the original published articles.

Bank of England cuts interest rates to lowest in almost three years after sharp dip in inflation

Key Highlights

Sources

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