December 30, 2025
Bank of England Delivers Pre-Christmas Rate Cut in Tight Split Vote
In a final monetary policy decision for 2025, the Bank of England (BOE) provided a measure of holiday relief to borrowers, voting narrowly to lower interest rates on Thursday. The central bank’s Monetary Policy Committee (MPC) was divided in a 5-4 vote, ultimately deciding to reduce the benchmark interest rate by 25 basis points, bringing it down to 3.75%. This represents the fourth rate reduction of the year. The Economic Rationale The decision was widely anticipated by economists, driven by a trifecta of economic indicators: Despite these indicators, the decision was contentious. Governor Andrew Bailey aligned with the committee’s “dovish”
