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Bank of England Cuts Rates, Sparks Housing Market Hopes

12/22/2025

33 6 Full Breakdown

Summary

Story summary

The Bank of England cut interest rates from 4% to 3.75% on December 21, 2025.
Inflation cooled, with consumer prices at 3.2% in November, supporting the decision.
Tracker mortgage holders may see monthly repayments drop by about £30.
Analysts say the move could revive the housing market, though the Bank of England's committee remains divided.

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Story summary

The Bank of England cut interest rates from 4% to 3.75% on December 21, 2025.
Inflation cooled, with consumer prices at 3.2% in November, supporting the decision.
Tracker mortgage holders may see monthly repayments drop by about £30.
Analysts say the move could revive the housing market, though the Bank of England's committee remains divided.