Base Rate down to 3.75% tomorrow?

Mark Watson-Mitchell - 17.12.2025

The economic news this morning is that the rate of inflation fell far more quickly than expected last month, that now leads the way for another cut in interest rates tomorrow.

Prices rose by just 3.2% in the month, the lowest level since March, and down from 3.6% in October.

That now marks the third consecutive month of falling inflation.

The expectations of City economists were for a much more modest fall in the CPI, the headline measure of inflation,

to 3.5%.