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Teaching Economics

In the News

Bank of England Cuts Rates to 3.75% — Explained

Geoff Riley

18th December 2025

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The Bank of England has cut interest rates to 3.75% following a narrow 5–4 MPC vote, marking the lowest rate since early 2023. The decision reflects confidence that inflation has peaked, as shown by steep declines from the 2022 highs. However, the key driver is weak UK GDP growth, with several recent months showing negative or minimal expansion. With global central banks also easing policy, the rate cut aims to support a softening UK economy.

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Geoff Riley

Geoff Riley FRSA has been teaching Economics for nearly forty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD and Revision conferences in the UK and overseas.

@tutor2uGeoff

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