Bank of England interest rates warning as several cuts expected | Personal Finance | Finance [Video]

The Bank of England is expected to cut interest rates next week – sparking a series of reductions in 2025.

The bank is set to drop them from 4.75% to 4.5%, in a move that could shake up savings, mortgages, and retirement plans.

Markets are pricing in an 84% chance of a cut as policymakers respond to slowing economic growth and a dip in inflation.

Some finance experts, including a new member of the Bank of England’s Monetary Policy Committee (MPC), suggests this could be the first of five or six quarter point cuts over the next 12 months to head off a recession.

While a rate cut may bring some relief to borrowers, experts are warning that it could also put pressure on savings rates, with further cuts likely to be gradual and cautious due to rising prices and job losses.

Homeowners hoping for immediate savings on mortgage payments may be disappointed.

Sarah Coles, head of personal finance at Hargreaves …