LONDON (AP) — The Bank of England is widely expected to cut interest rates for the third time in six months later Thursday, even though inflation remains above its target.

The Bank of England looks set to cut interest rates on Thursday for only the third time since just after the start of the COVID-19 pandemic in 2020, as it juggles the need to help the sluggish economy with still-strong inflation pressures.

The base rate peaked at 5.25% in late 2023, but policymakers reduced it to 4.75% throughout the following months. The Bank of England typically raises interest rates when inflation is high to curb spending and slow price increases.

The Bank of England is likely to cut the base rate to 4.5% tomorrow - we look at why below. Also in Money today: Savings queen Anna Bowes on bad rates being offered by the big banks, and Tesco trials personalised Clubcard offers.

A cut to interest rates could mean lower mortgage rates.

Experts predict the Bank of England will cut the UK’s base interest rate, which currently sites at 4.75 per cent, to 4.5 per cent

The base rate is currently at 4.75% after it was held at the previous Bank of England meeting in December 2024 - but is another cut in store for this Thursday?

The Bank of England (BoE) is set to cut interest rates in its next meeting this Thursday from 4.75% to 4.5%, following lower-than-expected inflation figures for December but ongoing concerns about sluggish economic growth. White House reiterates Trump plans to impose tariffs on China, Canada, and Mexico starting on Saturday

The Bank of England must contend with a slowdown in Britain's economy but also stubborn inflation pressures when it considers whether to cut interest rates in early February as well as its message about the outlook for the rest of the year.

The Bank of England (BoE) is expected to cut interest rates on Thursday, marking its third reduction since the COVID-19 pandemic. With the economy struggling due to rising costs, tax hikes by Finance Minister