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Economic Buzz: Bank of England cuts rates by 25 basis points to around three-year low
(19-Dec-2025, 12:09 Hours IST)  
The Bank of England cut its benchmark rate for the fourth time this year yesterday. The Monetary Policy Committee, governed by Andrew Bailey, voted 5-4 to reduce the bank rate by 25 basis points to 3.75 percent, which was the lowest since early 2023. This reduction aims to address economic stagnation and inflation that has been dropping faster than anticipated. The committee observed that the restrictiveness of policy has fallen as interest rate has been reduced by 150 basis points since August 2024. On the basis of the current evidence, Bank Rate is likely to continue on a gradual downward path, the bank said.

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