Bank of England Cuts Rates to 3.75% Amid Easing Inflation, Economic Slowdown

• Bank of England cut its key interest rate by 0.25% to 3.75%, the lowest since February 2023.
• The decision follows a sharp dip in consumer price inflation to 3.2% in November, below the BoE's 3.4% forecast.
• The rate cut aims to bolster Britain's stagnant economy, which is also facing a weakening jobs market and rising unemployment (5.1%).
• The Monetary Policy Committee voted 5-4, highlighting division, as inflation remains above the 2% target.
• UK inflation (3.2%) is still higher than the Eurozone (2.1%) and the U.S. (3.0%), posing a challenge for policymakers.

Why It Matters: BoE cuts rates to boost economy as inflation eases, balancing growth with price stability.