The Bank of England is expected to announce a third interest rate cut in six months, with economists predicting a reduction to 4.50%. This move comes despite inflation remaining above the bank's target rate. The base rate influences the cost of borrowing for mortgages and loans, as well as the returns on savings offered by banks.
Analysts are closely watching the bank's economic forecasts and the tone of the Governor during the subsequent press briefing. The decision to cut rates is driven by concerns over a stagnant economy and declining employment levels.
