In their economic outlook the rate setters see a threat from rising prices of food, energy and business services

Borrowing costs are forecast to fall to 4%, the lowest since early 2023, despite higher inflation.

Quarter-point reduction expected, with City investors predicting a three-way split among rate setters

Monetary Policy Committee members are likely to vote on a cut down to 4 per cent which will hamper savings but boost the mortgage market

The Bank's Monetary Policy Committee (MPC) reduced the base rate by 0.25 percentage points to 4 per cent at lunchtime.

Base rate cut by quarter point to 4% amid concern about strength of UK economy

Monetary Policy Committee members have voted on a cut down to 4 per cent which will hamper savings but boost the mortgage market

In their economic outlook the rate setters see a threat from rising prices of food, energy and business services