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.

Interest rates are expected to be cut by the Bank of England later, in a move closely watched by households and economists. Analysts predict the benchmark rate will be cut from 4.75% to 4.5%, as the Bank comes under pressures to boost the UK economy which has been showing slow growth.

The Bank of England was widely expected to cut its key interest rate on Thursday to help support weak British growth even if UK inflation stays elevated.

A CNBC report revealed that economists are betting on the Bank of England cutting rates by 25 basis points from 4.75% to 4.5% in the Thursday Monetary Policy Committee meeting. The expected rate cuts come as the UK economy continues to stagnate,

The cost of borrowing is expected to fall to its lowest point in more than 18 months on Thursday. Senior economists at the Bank of England will announce whether they are cutting the UK’s base interest rate,