Interest rates live: Bank of England cuts rate to three-year low in Christmas mortgage boost
Bank of England slashes interest rates to lowest level in nearly three years
- The Bank of England has cut its interest rate from 4 per cent to 3.75 per cent, marking the fourth reduction this year.
- This decision by the Monetary Policy Committee brings interest rates to their lowest point since February 2023.
- The rate cut is expected to lead to lower savings rates but could boost the mortgage market, potentially affecting 1.9 million people by 2026.
- While most existing mortgage deals are not immediately impacted, lenders will adjust new deals based on future interest rate expectations.
- The reduction was driven by November's inflation drop to 3.2 per cent, coupled with rising unemployment and poor economic readings.