“This interest rate cut is a particularly welcome early Christmas present for those households being squeezed by high mortgage bills and businesses being besieged by skyrocketing costs.
“The decision suggests that rate-setters are prioritising action to help mitigate the impact of a deteriorating economy, despite the meeting minutes highlighting some lingering worries over inflation persistence.
“The tight vote split confirms that the committee remain reluctant interest rate cutters with November’s Budget likely to have helped tip the balance in favour of loosening policy, given it’ll likely dampen both inflation and growth.
“Though the pace of policy loosening may slow as it approaches what the Bank considers as the neutral rate, the speed at which economic conditions are crumbling may push policymakers to cut more aggressively, possibly as early as February.”
ENDS
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Chartered accountants are talented, ethical and committed professionals. ICAEW represents more than 210,000 members and students around the world. 98 of the top 100 global brands employ ICAEW Chartered Accountants.* 87% of FTSE 100 companies, and 81% of FTSE 250 companies in the UK, have an ICAEW member on their board.
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* includes parent companies. Source: ICAEW member data March 2025, Interbrand, Best Global Brands 2024.
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