Interest rates get ready to tumble in 2025

ANALYSTS are split over how far and how fast the Bank of England is likely to slash interest rates for the rest of 2025 after Thursday's cut to 4.5%.

- By Chris Dorrell

Rate-setters backed a third 25 basis point rate reduction, which brought the base rate down to an 18-month low the Every member of Monetary Policy Committee (MPC) voted to lower borrowing costs, although two - Swati Dhingra and Catherine Mann called for a 50 basis point cut.

Mann's vote really put the cat among the pigeons, as she seemingly transformed from the MPC's arch-hawk into a dove.

Analysts at Goldman Sachs said that her decision was "particularly notable given that she had voted against the August and November cuts".