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MNN Global · December 18, 2025 · 1 min read

Bank of England likely to cut interest rates to 3.75%

What happened: Analysts expect the Bank of England to reduce its main interest rate from 4% to 3.75%, which would lower borrowing costs.

Why it matters:

  • Lower interest rates can make loans and mortgages cheaper for consumers and businesses.
  • This move may influence economic activity and inflation in the UK.

MNN Take: The Bank of England adjusts interest rates to manage economic growth and inflation, with rate cuts typically aimed at encouraging spending and investment.

Sources: BBC Business