Bank of England cuts bank rate to 3.75% as inflation pressure eases

The MPC noted that pay growth and services inflation have continued to moderate under restrictive policy settings. While inflation remains above the 2 per cent target, it is now expected to return to target more quickly in the near term. The risks from persistent inflation have diminished, though weaker demand poses a growing risk to medium-term inflation, the Committee said in a statement.

Having reduced rates by 150 basis points since August 2024, the MPC indicated that bank rate is likely to follow a gradual downward path, but stressed that future easing decisions will be finely balanced and dependent on incoming inflation data.

ALCHEMPro News Desk (KD)