Growth forecasts likely to be downgraded, with rate-setting committee tipped to cut lending rate from 4.75% to 4.5%

Bank of England policymakers are poised to cut interest rates and downgrade forecasts for economic growth, underlining the risks facing Rachel Reeves’s budget plans.

With inflation continuing to decline, the nine-member monetary policy committee (MPC) is widely expected to cut rates by a quarter point to 4.5% – the lowest level since June 2023 – on Thursday.