Interest rates cut for second time this year

It's after inflation fell to its lowest level since April 2021

Author: Chris MaskeryPublished 7th Nov 2024

Interest rates have been cut to 4.75%, the lowest level in more than a year, and the second cut in 2024

Rates had been at 5% after being cut by 0.25 percentage points in August, the first reduction since 2020, then kept the same in September.

Since then, the latest official data showed UK Consumer Prices Index (CPI) inflation fell to 1.7% in September, the lowest level since April 2021.

The slowdown, from 2.2% in August, was driven by a sharp slump in petrol prices and lower airfares.

Experts said inflation falling below the Bank’s 2% target level will encourage policymakers to continue easing interest rates, releasing some more pressure on borrowers and mortgage holders across the UK.

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