The Bank of England has cut interest rates to 3.75%, the lowest in almost three years, due to concerns over rising unemployment and weak economic growth. While this move is expected to boost borrowing, further cuts are anticipated to be more contentious.

• Interest rates were lowered from 4% to 3.75% following a 5-4 vote by policymakers.
• Andrew Bailey, Governor of the Bank of England, stated that future rate cuts would be a "closer call".
• Inflation slowed to 3.2% in November, and the Bank of England now forecasts it will fall "closer to 2%" by spring/summer next year.
• The rate cut is likely to reduce monthly mortgage payments for 500,000 homeowners with tracking mortgages by an average of £29.
• The Chancellor, Rachel Reeves, highlighted this as the "sixth interest rate cut since the election—that’s the fastest pace of cuts in 17 years".