Interest rates cut to 3.75% but further reductions to be 'closer call'

The Bank of England has cut interest rates to 3.75% amid concerns over rising unemployment and weak economic growth, with further reductions expected in the near future. This decision comes as inflation is predicted to fall closer to the target of 2%, prompting a possible rate cut in February. While this move may benefit borrowers, savers could see reduced returns, highlighting a need for a delicate balance between supporting the economy and managing inflation.