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The Bank of England cut its key interest rate by 25 basis points to 3.75%, in line with market expectations, as inflation fell and economic growth slowed.
The decision took the UK benchmark rate to its lowest level in almost three years and was the fourth cut this year. The MPC vote showed a sharp difference, with five members supporting a cut and four choosing to keep rates.
UK consumer inflation fell to 3.2% in November, the lowest since March, but still well above the 2% target and the highest among G7 countries.
At the same time, other economic data showed the labour market weakening and the UK economy contracting in the three months to October, adding to pressure on the central bank to support growth.
Markets are now only expecting one more rate cut in 2026, although some analysts see room for more aggressive easing in the coming months.
