The Bank of England cuts interest rates to 3.75%, marking the fourth cut of 2025. Inflation forecasted to return to target in 2026. Committee divided on future rate cuts, with uncertainty over 2026 trajectory. Market anticipates further easing, with next decision in February 2026. Economists await consistent inflation decline for future cuts.

Inflation data for November 2025 shows a decrease to 3.2%. Bank of England anticipates CPI to reach 2% target in 2027. Autumn Budget changes and lower oil prices contribute to revised inflation expectations. Weakening labor market with rising unemployment complicates economic outlook. Bank of England to meet eight times in 2026 to decide interest rate policy.

Read more at Morningstar: Bank of England Cuts UK Interest Rates to 3.75%