The Bank of England has cut the interest rate to 4.75%.
It’s only the second time in more than four years the cost of borrowing has been brought down by the Bank.
The new figure is a fall from the 5% figure set in August.
Interest rate falls – latest updates
At the time it was the first interest rate reduction since March 2020.
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Today’s drop comes as inflation has reached 1.7% – below the Bank’s 2% target – and wage rises have slowed.
Interest rates had been upped to slow inflation which spiralled after the pandemic and Russia’s invasion of Ukraine.
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