Business
What the latest interest rates change means for your mortgage, savings and bills
The Bank of England (BoE) announced on Thursday its decision to cut interest rates to 3.75 per cent, the fourth cut of the year.
For December’s vote, the bank’s nine-person Monetary Policy Committee (MPC) showed just a slight swing compared to last time out pre-Budget in November; a 5-4 split then favouring a hold became a 5-4 split in favour of cutting this time, with governor Andrew Bailey a key switcher.
Following falling inflation rates, poor economic figures and rising unemployment, it brings the base rate down to the lowest level in almost three years.
Here’s a brief rundown of what the current interest rate might mean for you:
What does the interest rate mean for mortgages?
Broadly speaking, as increasing interest rates over the last few years have meant mortgage repayments going up, then the reverse also holds true: lower rates, lower repayments. However, there are several important things to note.
Firstly, that it’s only the interest on the repayments which should change – your capital repayments will naturally decrease the more you pay off your mortgage. Secondly, the base rate isn’t the rate you are necessarily charged by your bank or lender for the mortgage – they’ll base theirs off the BoE rate but it doesn’t have to be the same.
More than half a million people do, however, have a mortgage which tracks the BoE interest rate and those will see an immediate change. Far more have fixed-term deals, which expire each year and need renegotiating – almost 2 million homes are expected to seek renewed deals in 2026.
If you’ve got a fixed term on a mortgage plan, you won’t see a change in any case until that comes to an end and you start a new one, but if you’ve already finished and moved onto a standard variable rate (SVR) deal, then you might see a change in your repayments.
New mortgage products tend to be based on swap rates – market agreements based on future expectations of interest rate movements – rather than the current bank rate, which is why there has been a recent battle between lenders dropping their rates even before the cut today.
What about savings accounts?
If you have money in a savings account, it’s the other side of the see-saw: rates going down mean you’ll earn less interest.
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As there has been a bit of a fierce battle raging among banks and building societies for customers, it’s still possible to get good deals if you are happy to lock in money for a fixed period of time or contribute regular amounts, with several offering more than 4 per cent until recently.
However, it’s likely some will be removed from the market or have their rates altered in the coming days, while many of the best deals in easy access accounts have been below 4.5 per cent for a while now.
There are always terms and conditions to be met, so ensure any accounts you open suit your circumstances, but the opportunity still remains to save and earn money at a better rate than inflation, which currently sits around 3.2 per cent.
Do be aware of the amount of interest you can earn without being taxed, though. If your savings account interest rate isn’t fixed, banks can always change the rate you get up or down.
A tax-efficient way of saving is to use a Cash ISA, where everyone (for now!) has a £20,000 personal allowance each year, which will drop to £12,000 soon with the other £8,000 reserved for tax-free investing.
Bills and repayments
Credit card repayments and other types of personal loans are of course also affected by interest rates, as the amount they all charge for borrowing could be altered.
For credit card users (and especially for Buy Now Pay Later deals), it’s always ideal to pay off the full amount each month if you are able to, to avoid interest being charged at all – depending on your circumstances and the account type, they can be one of the more costly ways to borrow.
Again, it may not be immediate that lenders alter their rates after a base rate change, but get in touch with them to assess your options if you feel your repayments could or should be lower.
A shopper carries Nike bags in San Francisco, California, US, on Wednesday, Dec. 17, 2025.
David Paul Morris | Bloomberg | Getty Images
Nike on Thursday posted quarterly earnings and revenue that topped Wall Street’s estimates, as strength in North America helped to offset a plunge in China sales.
The company’s stock slid more than 6% in extended trading Thursday, as investors digested the weakness in China and the sustained hit Nike is taking from higher tariffs.
Here’s what Nike reported for its second fiscal quarter of 2026, according to consensus estimates from LSEG:
- Earnings per share: 53 cents vs. 38 cents expected
- Revenue: $12.43 billion vs. $12.22 billion expected
The athletic apparel retailer said sales in North America rose 9% to $5.63 billion. But revenue in its Greater China market dropped 17% to $1.42 billion.
The sneaker company is just over a year into CEO Elliott Hill’s turnaround strategy, focusing on regaining its growth and market share, clearing out old inventory and investing in wholesale relationships.
“Fiscal year ’26 continues to be a year of taking action to rightsize our classics business, return Nike digital to a premium experience, diversify our product portfolio, deepen our consumer connection, strengthen our partner relationships and realign our teams and leadership,” Hill said on a call with analysts. “And I say we’re in the middle inning of our comeback.”
“We’re nowhere near our potential,” he added.
Hill said Nike’s improvements in its China market are “not happening at the level or the pace we need to drive wider change,” though he said the country remains one of the company’s most powerful long-term opportunities.
Nike expects fiscal third quarter revenues to fall by a low single digit percentage, with modest growth in North America. It also anticipates gross margins will drop 1.75 to 2.25 percentage points – including a 3.15 percentage point hit from tariffs.
The company said wholesale revenues climbed 8% to $7.5 billion during the quarter. But direct sales — which were a focus for Nike in the years before Hill took over and moved away from the strategy — fell 8% to $4.6 billion.
Nike has also been feeling the impact of tariff increases. It said Thursday that its gross margin decreased by 3 percentage points and inventories dropped 3% primarily due to higher tariffs.
The sneaker company has been reporting weakness in its Converse brand, too. In its first fiscal quarter, Nike said Converse sales dropped 27% – on Thursday, it reported a 30% drop in revenues for the sneaker brand.
Despite the weakness in some parts of Nike’s business, the company highlighted some areas of strength and new initiatives ahead. CFO Matt Friend said on the call that Nike.com posted its best Black Friday ever this year, partially driven by its Air Jordan “Black Cat” launch.
Nike also plans to launch a new footwear platform in January called Nike Mind, which aims to help athletes prepare for performance and competition, Hill said on the call.
Nike has been making larger internal changes under Hill.
Earlier this month, Nike underwent leadership changes to “remove layers,” according to Hill. Under its “Win Now” strategy, the company announced that Chief Commercial Officer Craig Williams would leave the sneaker giant.
Hill called the shakeup a move “about growth and offense.”
“Collectively, these changes amount to us eliminating layers and better positioning Nike to continue to have an impact the way only Nike can,” Hill said in a statement at the time.
Nike shares have dropped more than 13% this year as of Thursday’s close.
U.S. President Donald Trump sits in the Oval Office to sign executive orders, at the White House in Washington, D.C., U.S., Dec. 18, 2025.
Evelyn Hockstein | Reuters
President Donald Trump signed an executive order Thursday directing federal agencies to reclassify marijuana, loosening long-standing restrictions on the drug and marking the most consequential shift in U.S. cannabis policy in more than half a century.
The order, once finalized by the Drug Enforcement Administration, moves cannabis out of Schedule I classification — the most restrictive category under the Controlled Substances Act, alongside heroin and LSD — to a Schedule III classification, which encompasses substances with accepted medical use and a lower potential for abuse, such as ketamine and Tylenol with codeine.
“This action has been requested by American patients suffering from extreme pain, incurable diseases, aggressive cancers, seizure disorders, neurological problems and more, including numerous veterans with service-related injuries, and older Americans who live with chronic medical problems that severely degrade their quality of life,” Trump said from the Oval Office on Thursday.
Also on Thursday, the Centers for Medicare and Medicaid Services, led by Dr. Mehmet Oz, is expected to launch a pilot program in April enabling certain Medicare-covered seniors to receive free, doctor-recommended CBD products, which must comply with all local and state laws on quality and safety, according to senior White House officials. The products must also come from a legally compliant source and undergo third-party testing for CBD levels and contaminants.
Shares of cannabis conglomerates were down following the announcement, likely from worries of new compeititon from international companies.
Trulieve’s stock finished the day down about 23%, Green Thumb Industries fell more than 16% and Tilray Brands fell about about 4% as of close on Thursday. The AdvisorShares Pure US Cannabis ETF, which tracks American operators, slid almost 27%.
“Millions of registered patients across the United States, many of them veterans, rely on cannabis for relief from chronic and debilitating symptoms. We commend the administration for taking this historic step. This is only the beginning,” Ben Kovler, founder and CEO of Green Thumb, said in a statement to CNBC.
The reclassification is viewed by many analysts as a financial lifeline for the cannabis industry. The move exempts companies from IRS Code Section 280E, allowing them to deduct standard expenses like rent and payroll for the first time. It also opens the door for banking access and institutional capital previously sidelined by compliance fears.
Many on Wall Street also expect the changes and the Medicare pilot to draw major pharmaceutical players into the sector to chase federally insured revenue.
While CBD has surged in popularity in recent years, with infused consumer goods ranging from seltzers to skin care, the Food and Drug Administration has stopped short of granting the compound its full backing.
Studies have found “inconsistent benefits” for targeted conditions, while FDA-funded research warns that prolonged CBD use can cause liver toxicity and interfere with other lifesaving medications.
Currently, the FDA has only approved one CBD-based drug, Epidiolex, for rare forms of epilepsy.
“I want to emphasize that the order … doesn’t legalize marijuana in any way, shape or form, and in no way sanctions its use as a recreational drug,” Trump said.
Experts and industry insiders told CNBC this week that a reclassification could pave the way for more research into the effects of CBD use.
NEW DELHI: The new nuclear energy bill, which was passed in Rajya Sabha by voice vote after a four-hour discussion while rejecting many amendments moved by opposition to send it to a parliamentary panel for scrutiny, marks a decisive shift in India’s nuclear governance, embedding safety oversight in law across the lifecycle of an atomic plant, unlike the existing framework that relied largely on executive discretion and post-accident accountability.Sustainable Harnessing of Nuclear Energy for Transforming India (SHANTI) Bill will allow private participation in India’s tightly controlled civil nuclear sector as the country seeks to meet its clean energy goals by 2047. As opposition raised safety and liability concerns, officials said it establishes a statutory safety regime that ensures continuous compliance rather than reliance on one-time permissions. It seeks to provide for a “pragmatic civil liability regime for nuclear damage and confer statutory status to Atomic Energy Regulatory Board (AERB)”.Officials said unlike the previous law – in which nuclear safety oversight was shaped largely by broad executive authority and administrative rules – SHANTI fundamentally recasts the framework by shifting to a “statutory, lifecycle-based regulatory regime”. Govt manages radiation risks and radioactive waste, but does not mandate separate safety authorisations or legally bind safety obligations to each phase of a nuclear plant’s life. AERB’s stage-wise consent process for construction, commissioning and operation existed only as an administrative practice. Civil Liability for Nuclear Damage (CLND) Act, 2010 further reinforced a post-accident approach by focusing on compensation and insurance rather than prevention.“These laws (Atomic Energy Act and CLND Act) treated safety primarily as a post-damage responsibility, rather than a proactive governance requirement,” said an official. SHANTI separates “permission to operate” from “permission to operate safely”, requiring both a licence and an independent safety authorisation. Any activity involving radiation exposure risk – including construction, operation, transport, storage, decommissioning, or waste management – will now require explicit safety approval.It also consolidates regulation, enforcement, civil liability and dispute resolution within a single statute, reducing legal complexity and compliance uncertainty. “It grants a clear statutory authority to AERB to inspect facilities, investigate incidents, issue binding directions, and suspend or cancel operations that do not meet safety standards. Regulatory action is no longer dependent on executive discretion. Accident prevention is significantly enhanced by legally recognising serious risk situations as nuclear incidents, even without actual damage,” said the official. Core functions such as fuel enrichment, spent-fuel reprocessing, and heavy water production will remain exclusively under Centre’s control.Anujesh Dwivedi, partner at Deloitte India, said continuing with the existing legal framework would make it difficult for nuclear energy to replace thermal power in the long run. “Over decades, India added only about 8GW of nuclear capacity. Scaling this up to 100GW by 2047- and potentially 300GW or more by 2070 – required major reforms, which these regulations seek to address,” he said.Meanwhile, PM Modi said passing of the bill marks a “transformational moment for our technology landscape”.
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