Why interest rates are likely to be cut after the Budget

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"The small drop in the inflation rate from 3.8 per cent to 3.6 per cent announced on Wednesday morning is the latest indication that a fourth interest rate cut of the year is expected before the end of 2025. The Bank of England's Monetary Policy Committee voted to hold rates at 4 per cent at the start of November, but there is one final vote to come in 2025 on 18 December."

"While the BoE governor Andrew Bailey spoke of wanting to see more data before committing to further cuts, the confirmation that inflation has eased slightly is the latest, and biggest, indicator that a rates cut is required to get the economy moving once more. There is one more major event on the horizon before the vote: Rachel Reeves' Budget. But expectations are for this to be similarly disinflationary, meaning a rates cut appears almost a certainty."

The Independent covers topics from reproductive rights and climate change to Big Tech, investigating campaign finances and producing documentary work focused on American women fighting for reproductive rights. Donations fund on-the-ground journalists and enable reporting without paywalls, aiming to reach audiences across the political spectrum. Inflation fell from 3.8% to 3.6%, strengthening expectations of a fourth interest-rate cut before the end of 2025. The Bank of England's Monetary Policy Committee held rates at 4%, with a final vote scheduled for 18 December 2025. Governor Andrew Bailey wants more data, but easing inflation and an expected disinflationary Budget make a cut likely.

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