6:06 am, December 19, 2025
Interest rates reduced to near three-year low but further cuts a ‘closer call’
Interest rates have been reduced to their lowest in nearly three years as Budget measures are set to push down on inflation but the Bank of England cautioned that further cuts will be a ‘closer call’.
The Bank’s Monetary Policy Committee (MPC) voted to reduce rates from 4% to 3.75%. Governor Andrew Bailey said: ‘We still think rates are on a gradual path downward,” he added. ‘But with every cut we make, how much further we go becomes a closer call.’
Economists think the pace of interest rate cuts will slow next year as the Bank gets closer to what it deems a ‘neutral’ rate and inflation nears its 2% target level.
Consumer confidence improves but remains subdued ahead of Christmas
Consumer confidence edged up ahead of Christmas but remains subdued in the face of cost-of-living pressures, according to new figures.
GfK’s long-running Consumer Confidence Index improved by two points to minus 17 for December.
The research showed that all five of the survey’s measures increased for the month, bouncing back from a weak November which had been impacted by pre-Budget caution.
Fiat 600 receives new ‘Sport’ variant
Fiat has revealed a new ‘Sport’ trim for the 600 SUV range to help boost its appeal for 2026.
The 600 Sport adds further design touches over the standard car with two-tone paint options, 18-inch alloy wheels, black accents on the front grille, door handles and rear taillights and ‘Sport’ badging located on the front wings.
The Sport comes in hybrid and electric guides, with prices starting from £28,750 for the former and £29,750 for the latter. Order books open in January.
The markets
Stock prices in London closed in the green on Thursday, following the Bank of England’s decision to cut rates and a hold from the European Central Bank.
The FTSE 100 index closed up 63.45 points, 0.7%, at 9,837.77. The FTSE 250 ended up 160.83 points, 0.7%, at 22,325.59, and the AIM All-Share closed up 4.88 points, 0.7%, at 756.36.
The pound was quoted higher at 1.3387 dollars at the time of the London equities close on Thursday, compared to 1.3359 dollars on Wednesday. It had bought 1.3356 dollars just before the Bank’s rate decision.
Streeting ‘wants to end dispute with resident doctors’ with talks in new year
Health decretary Wes Streeting has said he wants to end the dispute with resident doctors, adding ‘we will get around the table with them again in the new year’.
Resident doctors in England have entered the second day of strike action due to a bitter dispute with the government over jobs and pay.
It comes as new figures from the NHS show that the number of people in hospital in England with flu continues to rise and remains at a record level for this time of year, though the rate of growth has slowed.
PPE Medpro wound up after being ordered to pay £148m to government
PPE Medpro, the company linked to Baroness Michelle Mone, has been wound up at a specialist companies court.
The decision, made by a judge at a hearing on Thursday, could mean that the government is unlikely to see most of the £148m owed to it by the company after it was found to have breached a contract to supply 25 million surgical gowns during the coronavirus pandemic.
PPE Medpro, a consortium led by Lady Mone’s husband, businessman Doug Barrowman, had been ordered to pay the sum after losing a High Court battle against the Department for Health and Social Care (DHSC) in October. But it filed for administration on September 30, the day before the ruling, with the money still unpaid.
Thursday on Car Dealer
Ford dealer goes into administration with customers left in the dark
Cambridgeshire car dealer Pilgrims of March has gone into administration following confusion when its doors closed at the end of last month.
Car dealers Barnetts and John Clark Motor Group swap VW sites as part of ‘strategic realignment’
Dealer group Barnetts has announced a major shake-up to its retail network after agreeing a ‘strategic realignment’ with rival firm John Clark Motor Group.
Another bite of the Chery: Arnold Clark expands partnership with three new showrooms
Dealer group Arnold Clark has announced the opening of three new Chery branches across England and Scotland as the Chinese brand continues to grow its UK network.
Weather
Dry and bright conditions dominate England and Wales today, reports BBC Weather. Scotland sees frequent showers, though the east stays dry, while Northern Ireland has variable cloud with isolated showers. Windy in the north.
Tonight is mostly dry and clear, with lingering cloud and a few showers in western areas and breezier western coasts.
