BOE Cuts Rates and Suggests It May Ease Further in 2026

The Bank of England cut interest rates to the lowest in almost three years in a pre-Christmas boost for UK households, and suggested inflation is cooling enough for it to ease policy further in 2026. The Monetary Policy Committee voted 5-4 to lower the benchmark rate by a quarter point to 3.75%, minutes from its meeting showed on Thursday. It was the first reduction since August after the nine-member panel skipped moves at the previous two decisions. Bloomberg’s Lizzy Burden reports.