BoE Cuts Rates to 4.75% as Inflation Eases

The Bank of England lowered its Bank Rate by 25 basis points to 4.75% in November as expected, marking the second cut since the rate-cutting cycle began in August.

The decision saw 8 of 9 MPC members voting in favor, surpassing expectations of 7, with Catherine Mann as the only dissenting vote. This cut reflects easing inflationary pressures, with UK inflation dropping to 1.7% in September, its lowest in over three years.

Services inflation, a key measure of underlying price trends, fell to a two-year low of 4.9%, though it remains elevated. The Bank forecasts continued declines in core inflation over the medium term but expects the Labour Party's expansionary budget to add 0.5 percentage points to inflation at its peak. Inflation is projected to reach 2.5% by year-end and 2.2% by 2026, with the budget potentially increasing GDP by 0.75% at its peak within a year.

Source: Bank of England

Latest Analysis

US Reshapes Tariff Strategy with Key Deals (28 July-1 Aug)

The euro rallied to its strongest level in years, supported by easing trade tensions and a softer dollar.

Detail

Dollar Steady on US-EU Trade Pact (29.07.2025)

The U.S. Dollar Index held firm on Tuesday after gaining 1% the previous day, supported by euro weakness in the wake of a fresh U.S.-EU trade agreement.

Detail

U.S.-China Truce and EU Deal Shape Key Policy Week (28.07.2025)

The euro rose as the U.S.-EU trade deal eased tensions, which increased risk appetite and weakened demand for the dollar. The reduced 15% tariff supported market sentiment, while dovish Fed expectations could provide further upside for the euro.

Detail