Chancellor Rachel Reeves welcomes the cut, but says she is "under no illusion about the scale of the challenge facing households".

Bank of England Governor Andrew Bailey stuck to his script outlining gradual interest rate cuts on Thursday, but Donald Trump's White House return and threats to impose tariffs could force a hasty rewrite,

The Bank of England has cut its main interest rate by a quarter of a percentage point after inflation across the U.K. fell below its target rate of 2%.

AXA Investment Managers are sticking with their forecast of one quarter-point cut to UK interest rates per quarter next year. That would bring Bank rate down to 3.75% at the end of 2025. Gabriella Dickens,

The Bank of England has cut interest rates to 4.75 per cent after inflation fell to a three-year low in September. The eight-to-one decision to cut the base rate by 0.25 percentage points was in line with the expectations of economists polled by Reuters.

The Bank of England has been urged to slash interest rates at a “further and faster” pace after dropping the prime rate to 4.75 per cent. Threadneedle Street cut interest rates for a second time this year after inflation fell to 1.