Bank of England cuts interest rates again—here's why it matters
The Bank of England just dropped its base rate from 4.00% to 3.75%, marking the fourth cut this year and the sixth since Labour took office in 2024.
The goal? Make loans and mortgages a bit less painful for everyone, as inflation is finally cooling off (though still not quite where the government wants it).
What's behind the move?
Recent numbers show inflation dipped to 3.2% in November, down from 3.6%—a good sign, but still above the target of 2%.
At the same time, the UK economy shrank slightly in October, making it four straight months without growth.
How are leaders reacting?
Chancellor Rachel Reeves welcomed the rate cut, saying it fits with her latest budget plans to help ease financial pressure.
Still, business groups warn that higher employer national insurance costs and ongoing economic uncertainty aren't making things any easier right now.