Rate Cut Christmas Cheer for Business

18th December 2025

Responding to the latest Bank of England interest rate decision, Stuart Morrison, Research Manager at the British Chambers of Commerce said:

“Today’s interest rate cut to 3.75%, is a much-needed Christmas gift for businesses across the UK. However, unwrapping growth remains a huge challenge.  

“With the economy flatlining, wage growth slowing, unemployment up and inflation easing – today's Bank of England decision was widely expected. Nevertheless, the MPC is likely to need more evidence that inflation is under control before agreeing to further rate cuts next year. Today's close vote by the committee underlines the uncertainty ahead.   

“With firms being hit by the high cost of borrowing, and a raft of other financial pressures, their confidence remains low. Last month’s Budget was a missed opportunity to drive significant growth.  

“2026 must be a year of delivery by Government to give business the powerful tools to drive forward growth. We urgently need to see action on planning, regulation, skills, boosting trade and supporting AI adoption.”