Analysts are pricing in another base rate cut from the Bank of England tomorrow following last months larger-than-expected drop in the consumer price index (CPI) rate of inflation.
The latest figures from the Office for National Statistics (ONS), which were published today, revealed inflation fell from 3.6 per cent to 3.2 per cent in the 12 months to November 2025.
In recent years, the cost of borrowing has been raised to as high as 5.25 per cent in an effort to ease inflationary pressures but the base rate has since fallen to four per cent.
The central bank's Monetary Policy Committee (MPC) will confirm any changes to the base rate tomorrow at around 12pm with a 0.25 percentage point cut to 3.75 per cent widely expected.
Is the Bank of England cutting interest rates fast enough?
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