The Bank of England is expected to cut interest rates later today to its lowest level since February 2023.
Analysts are predicting a fall from 4% to 3.75%, although a unanimous decision from the the nine-member Monetary Policy Committee (MPC) is unlikely.
If approved, this would be the sixth cut in interest rates from August last year.
The move follows fresh signs of cooling inflation and mounting pressure on the UK economy.
New data released on Wednesday showed Consumer Prices Index (CPI) inflation fell more sharply than expected, dropping to 3.2% in November from 3.6% in October, according to the Office for National Statistics.
Sanjay Raja, chief UK economist at Deutsche Bank, said: “With disinflation progress on track, the labour market showing added signs of loosening, and GDP growth missing expectations, a Christmas rate cut looks all but certain.”
FTSE100
The UK's flagship share index, the FTSE 100, was xxxxxx at xxxxxxxx shortly after opening this morning.
Brent crude oil futures were up 0.78% at $59.75 a barrel.
Companies reporting today
- Currys - Half Year Results