The Bank of England has cut interest rates to 3.75%
The decision by five votes to four brings rates down from 4 per cent, at which they’d been held since August.
The cut is the fourth this year and means base borrowing costs are now at their lowest rate since February 2023.
The committee said that with inflation falling they believe that interest rates are on a downwards spiral
Inflation has fallen a long way from its peak of over 10% three years ago, and is 3.2% in the latest measure.
“We think that Bank Rate is likely to fall gradually further in future, but that will depend on whether variables like pay growth and services inflation continue to ease.” said the committee
