The Bank of England’s Monetary Policy Committee (MPC) has just voted to cut interest rates to 3.75 per cent and in doing so has delivered the Chancellor an early Christmas present. The five to four decision brings rates down to from the 4 per cent they’d been held at since August. The cut is the fourth this year and means base borrowing costs are now at their lowest rate since February 2023.

The cut has happened because swing voter and Bank Governor Andrew Bailey switched his vote. Markets had anticipated the move, with trades implying a cut had 90 per cent........

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