# Bank of England cuts policy rate by 25 bps to 3.75% as expected

> The Bank of England lowered its policy rate by 25 bps to 3.75% in a 5-4 vote, in line with market expectations. Governor Bailey voted for the cut. The bank said rates are on a gradual downward path, with further easing becoming a closer call.

- Date: 2025-12-18 · published 2025-12-18T12:00:00.000Z
- Category: macro · region UK · magnitude low
- Page: https://feedsoft.ai/events/21761-bank-of-england-cuts-policy-rate-by-25-bps-to-3-75-as-expected
- Commodities: [British Pound (USD per GBP)](https://feedsoft.ai/c/GBPUSD.md)

## Why it matters

The decision was widely expected, so the direct market impact is limited. It mainly shapes sterling and gilt expectations rather than commodity prices.

## Sources

- fxstreet.com: https://www.fxstreet.com/news/boe-expected-to-cut-interest-rate-to-375-amid-higher-unemployment-softer-inflation-202512180700

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.