The Bank of England (BoE) cut interest rates by 25 basis points on Thursday 7 Novermber.

The BoE’s Monetary Policy Committee voted 8-1 in favour of the decision to bring the bank’s key rate to 4.75%. It marks the central bank’s second such reduction this year, after it began its easing cycle in August.

Policymakers pointed to a continued easing of inflation in their decision, adding that further cuts could be expected if price growth remains stable. However, the bank said it now expects inflation to tick up slightly in 2025, rising to around 2.75%, before falling back to its 2% target.

Money markets had been pricing in a 97% chance of the quarter-point trim at the November meeting, even as analysts have warned that subsequent cuts could be delayed as a result of the government’s tax-and-spend budget.