Rates cut to lowest for almost 3 years

INTEREST rates have been slashed to their lowest level in nearly three years, as inflation looks set to fall faster than policymakers expected.

- BY KATIE ELLIOTT

The Bank of England’s Monetary Policy Committee voted by five to four to reduce the base rate from 4% to 3.75%.

Borrowing costs are now at their lowest level since early 2023.

Bank Governor Andrew Bailey was among those backing the cut.

He said the UK has “passed the recent peak in inflation and it has continued to fall,” allowing rates to be lowered again.