Economists predict cut to interest rates

Borrowing costs are set to ease further as the Bank of England contends with stagnant growth and rising unemployment, experts have predicted.

- ANNA WISE Press Association

Most economists think the Bank’s Monetary Policy Committee (MPC) will cut interest rates by 0.25 percentage points to 4% tomorrow.

It could release pressure for some mortgage holders amid hopes that cheaper deals will enter the market if the Bank’s base rate is lowered further.

Interest rates have been steadily cut over the past year from a peak of 5.25%. Economists think a slowdown in the UK jobs market could prompt the MPC to ease monetary policy.