The Bank of England is widely expected to cut interest rates, reducing the Bank rate from 4% to 3.75% - its lowest level since February 2023. Analysts anticipate a close vote among the nine-member Monetary Policy Committee, with some members still cautious about easing policy too quickly. If agreed, it would be the sixth rate cut since August last year, reflecting growing confidence that inflationary pressures are easing. New data from the Office for National Statistics show inflation falling more sharply than expected, from 3.6% in October to 3.2% in November. Although inflation remains above the Bank’s 2% target, signs of rising unemployment and a sluggish economy are increasing pressure for action. Economists suggest cooling price pressures now outweigh previous concerns about cutting too soon. Lower interest rates are expected to bring modest relief to homeowners on tracker or variable-rate mortgages, with small monthly reductions in repayments. However, savers are likely to see reduced returns, as easy-access savings rates continue to decline. The decision highlights the delicate balance between easing household pressures and safeguarding long-term economic stability.