The Bank of England in London: cut interest rates by a quarter point to 3.75 per cent on Thursday, responding to signs of stagnation and cooling inflation while cautioning that future decisions on reductions were likely to be a “closer call”. Photograph: Justin Tallis/Getty ImagesThe Bank of England (BoE) cut interest rates by a quarter point to 3.75 per cent on Thursday, responding to signs of stagnation and cooling inflation while cautioning that future decisions on reductions were likely to be a “closer call”. Mr Bailey’s remarks indicate that the central bank is approaching the end of its current rate-cutting cycle. The two-year gilt yield, which is sensitive to changes in interest rates, rose 0.04 percentage points to 3.75 per cent. “While I see scope for some additional policy easing, the path for Bank Rate cannot be prejudged with precision, recognising in part the more limited space as Bank Rate approaches a neutral level,” said Mr Bailey.

Source: The Irish Times December 18, 2025 18:51 UTC