The Bank of England governor Andrew Bailey has timed this rate cut just before Christmas.
And while this will be welcomed for many borrowers and businesses, the Bank sent out some caution about whether the cuts would continue at the same speed next year.
It might take a lot more for the much-needed jolt of confidence and festive spirit to spread across the economy to businesses that paused investments, and consumers who sat on their savings.
It was a narrow decision, with the governor as the swing voter from hold last month to cut today. Andrew Bailey said we had “passed the peak of inflation”.
