Bank of England cuts key interest rates by 25 bps to 3.75% after tight vote

The Bank of England has cut interest rates to 3.75% following a narrow 5-4 vote, with Governor Andrew Bailey shifting his stance. While signalling a gradual downward path for borrowing costs, policymakers expressed concerns about persistent inflation, which remains the highest among G7 economies. The central bank also revised its growth forecast downwards, anticipating stagnation in late 2025.