The Bank of England cut interest rates to a near three-year low

The Bank of England cut its key interest rate on Thursday, in a move that is in step with the Federal Reserve rather than following other central banks in Europe. The European Central Bank has entered a period of stabilizing borrowing costs. The Bank of England cut its key rate from 4% to 3.75%, near its lowest level in three years, resuming a series of rate cuts since August 2024, following a pause in rate cuts in November. Borrowing costs are likely to continue falling in the coming months, but are already near lows, the bank said. Like their counterparts at the Federal Reserve, Bank of England policymakers are struggling to balance above-target inflation with a cooling job market, with MPC members holding different views on how quickly interest rates should fall.