The Bank of England cuts interest rates to 3.75%

The Bank of England has cut interest rates by a quarter of a percentage point to 3.75%, citing continued progress in bringing down inflation.

For households, the cut should ease pressure on variable-rate mortgages and loans, while savers are likely to see lower returns on their savings over time.

Inflation has fallen sharply from a peak of more than 10% three years ago and now stands at 3.2%.

That has allowed rates to be reduced for the sixth time since August 2024.

The Bank expects interest rates to continue edging down gradually as it works to return inflation to its 2% target.