Bank of England set to reduce interest rates

Today, the Bank of England will likely cut interest rates again for the second consecutive year despite the impending inflationary forces due to Donald Trump's election victory in the US and the Budget that raises taxes.

The Bank Rate is expected to be reduced from 5pc down to 4.75pc. In August, the rate was cut for the first four-year period.  Inflation fell to 1.7pc, the lowest since April 2021.

The Office for Budget Responsibility forecasts inflation to average 2.5pc in this year, and 2.6pc the following year, before it starts to fall. This is assuming that "the Bank of England" responds to bring it down to its target rate.