Interest Rate Cut and Slower Inflation Offer Britons a Reprieve
The New York Times • • general
Key Points:
- The Bank of England cut interest rates by 0.25 percentage points to 3.75% after inflation slowed more than expected, marking the sixth rate cut in the past 18 months.
- Inflation in the UK fell to 3.2% in November, down from 3.6% the previous month, easing concerns about persistent high inflation.
- The central bank had previously held rates steady due to worries about inflation remaining stubbornly high.
- The rate-setting committee has been divided between concerns over weakening economic demand and fears that high inflation could become embedded in consumer and business behavior.
- Governor Andrew Bailey indicated that the peak of inflation has passed and the continued fall justified the recent rate cut.
