Interest rate cut today ‘nailed on’ amid weakening confidence, say City economists [Video]

Another interest rate cut later today from the Bank of England is looking “nailed on” City economists said today after the latest signs of weakening business confidence.

The Bank’s Monetary Policy Committee (MPC) will reveal at noon whether it voted for a second quarter point cut following its first reduction in the cost of borrowing in four years in August.

The Bank’s benchmark rate now stands at 5% and is expected to be lowered to 4.75%, the lowest since June last year.

A rate cut would immediately reduce the mortgage bills for millions of home owners on variable rate deals such as trackers although the majority on fixed rates would see no change until they come to refinance.

Before the Budget a cut was seen as a near certainty – with a second move in December – but the bigger than expected scale of Government spending and borrowing revealed in last week’s Budget prompted forecasters and investors to …