Overview
- The decision passed 5–4, with Governor Andrew Bailey switching to support the cut.
- It is the fourth reduction of 2025 and takes borrowing costs to the lowest level since early 2023.
- Inflation fell to 3.2% in November, and forecasters now see it approaching the 2% target by spring 2026.
- The Bank expects zero growth in the final quarter and warns of a weakening labour market, signaling a gradual path for any additional cuts.
- Mortgage costs are already easing as trackers fall and lenders trim fixed deals, while savers face lower returns, including Cash ISA rate cuts at Trading 212.