The Bank of England has lowered interest rates to 4%, bringing the cost of borrowing down to its lowest level in more than two years.
The fifth rates cut since last August was narrowly backed by the bank's policy makers who required two votes to reach a decision, lowering the rate from 4.25%.
The bank's governor told the BBC the path for rates continues to be "downwards", although the unprecedented second vote indicates further interest rate cuts may be finely balanced.
According to the Bank of England's Monetary Policy Report, inflation is now expected to peak at 4% in September, higher than its May prediction of 3.8% and double the bank's target rate.
Governor Andrew Bailey told the BBC: "Interest rates are still on a downward path, but any future rate cuts will need to be made gradually and carefully."
He added the course of future rate cuts "is a bit more uncertain frankly".
FTSE 100
The UK's flagship share index, the FTSE 100, was down 34 points at 9,108 shortly after opening this morning.
Brent crude oil futures were down 0.47% at $65.99 a barrel.
Companies reporting today
- Renewables Infrastructure Group - Half Year Results
- TBC Bank Group - Q2 Results
- TSMC - Corporate Sales Release