The Bank of England 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.

The Bank of England looks likely to cut interest rates next week, when it could also nudge investors to expect faster reductions than they currently predict as the economy flatlines.

Rate-setters are likely to signal a cautious approach for the remainder of the year given lingering price pressures in the economy.

The Bank of England is expected to cut interest rates when it meets later this week, which could lead to further mortgage rate reductions.

Markets have raised the prospect that the Bank of England will cut the base rate by up to four times this year, as fears of a global trade war rise.   US President Donald Trump has said he would impose tariffs of 25% on Mexico,

Rate-setters are all but certain to announce a cut from 4.75% to 4.5% at the next Monetary Policy Committee meeting on Thursday.

The Bank of England is expected to bring down borrowing costs and cut interest rates to their lowest level in 18 months this Thursday, as policymakers weigh up mounting economic pressures. Economists widely predict that it is a "sure bet" the Bank's Monetary Policy Committee (MPC) will reduce the base rate from 4.