BoE cuts rates by 25bp in another knife-edge decision
Doves see cold labour market while hawks fear ‘structural changes’ in wage-setting behaviour
The Bank of England has lowered rates by 25 basis points to 3.75% in a close decision, as above-target inflation and a sluggish labour market continue to divide policy-makers over where the economy is headed.
In a 5–4 decision today (December 18), the bank’s monetary policy committee (MPC) voted for its fourth cut this year and the sixth since it began its current easing cycle in August 2024.
The decision was in line with market expectations. The pound rose slightly against the dollar following
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