The Bank of England has cut the Base Rate from 4% to 3.75%, the lowest level in around three years. While the move had been widely expected, the decision was finely balanced, passing by a narrow 5–4 vote.
In this edition of Citrus Bites, Richard Harris explains why the rate cut comes alongside mixed signals for the UK economy. While inflation has fallen faster than expected, other parts of the economic picture are showing signs of strain.
Key points from this episode include:
A narrow 5–4 vote – reflecting concerns about cutting rates too quickly while inflation remains above the 2% target.
Inflation easing – with core inflation falling and coming in lower than forecasts.
Slowing economic growth – including recent GDP data showing negative monthly growth.
Rising unemployment – with particular pressure on younger workers entering the job market.
Falling job vacancies – signalling increased caution among employers.
Slowing wage growth – with real earnings now close to flat once inflation is taken into account.
Confidence under pressure – as both businesses and households become more cautious and savings rates rise.
Watch the full episode now
If you’d like a clear explanation of why the Base Rate was cut — and what the data is really telling us as we head into 2026 — watch the full Citrus Bites episode above.
To see more of our video updates visit our latest news page.
Don’t forget to subscribe to our YouTube channel.
Approver Quilter Financial Services Limited. 27/11/2025
