The Bank of England continues to cut interest rates, with the fourth rate adjustment in 2025 to 3.75%

【BlockBeats】The Bank of England announced a rate cut decision on December 18, with the Monetary Policy Committee’s vote being quite close. Five members voted to cut the benchmark interest rate from 4.0% to 3.75%, marking the fourth rate cut since 2025. The other four members advocated maintaining the rate, concerned that inflationary pressures have not been fully released.

Latest economic data shows a significant slowdown in UK inflation. Meanwhile, internal forecasts from the central bank indicate that economic growth may stagnate by the end of 2025. Against this backdrop, Governor Bailey changed his previous stance and supported a rate cut, ultimately tipping the voting balance.

In a statement, Bailey admitted: “We still believe that interest rates will be gradually lowered. But how much further we can cut after each rate reduction is becoming increasingly difficult to gauge.” This statement reveals the dilemma faced by the central bank’s policy-making—balancing the risks of economic slowdown with the need to prevent inflation from reigniting. In other words, the pace of subsequent rate cuts is likely to slow further.

For the cryptocurrency market, the direction of global central bank policies remains an important reference. The cautious attitude of the Bank of England reflects that monetary policy in Europe and the US has entered a phase of fine-tuning, with limited room for liquidity easing. Investors need to closely monitor the subsequent actions of various central banks and the true trajectory of inflation data.