Bank of England set to cut interest rates as US tariff impact in focus

UK interest rates are set to be cut to 4.25% as the Bank of England eases costs for borrowers while it digests the impact of US tariffs on the economy.

Most economists are expecting rates to be reduced by 0.25 percentage points on Thursday.

Sandra Horsfield, an economist for Investec, said it is a “near-certainty” that borrowing costs will be eased further, with most participants in the financial markets pricing in a cut.