Interest rates LIVE: Bank of England set to make major cut as economy struggles
It would mark the fifth cut since last August, bringing the rate down to its lowest since March 2023. The Monetary Policy Committee (MPC) is widely tipped to reduce the base rate by 0.25% to 4%, with the decision set to be announced at midday today.
Brits are hoping the move will pave the way for cheaper deals for mortgage holders and new buyers, but it also means a smaller return for savers. It comes as the UK economy struggles with rising inflation against the background of a trade war sparked by Donald Trump's tariffs.
09:27Zahra Khaliq
Bank of England tipped to cut base rate to 4% today
The Bank of England is tipped to lower interest rates this afternoon, with an announcement due around noon.
Right now, the interest rate is 4.25%. BoE might cut it down to 4%.
That would make borrowing money cheaper (like loans and mortgages).
But it would also make saving money less rewarding, because you'd earn less interest on savings.
09:15Zahra Khaliq
Why are interest rates being cut?
Interest rates are being cut because the UK economy hasn't been growing much lately.
It didn't grow at all in April and May, with Chancellor Rachel Reeves calling the economy's recent performance "disappointing."
Lowering interest rates is a way to try to boost the economy by encouraging people and businesses to borrow and spend more.
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