Interest rates: Why have they been cut and what does it mean?

The value of outstanding mortgage balances with arrears jumped by just over 50% in the fourth quarter of 2023 compared with a year earlier, according to Bank of England figures (Alamy/PA) -

The Bank of England has cut interest rates to 4.5%, its lowest level since June 2023.

Rates had been at 4.75% since the summer after two reductions, and came down again amid a backdrop of slow growth in the economy.